A multiple regression model was developed for predicting


Question: A multiple regression model was developed for predicting firms' governance level, measured on a scale, based on firm size, firm profitability, fixed-asset ratio, growth opportunities, and nondebt tax shield size. For firm size, the coefficient estimate was 0.06 and the standard error was 0.005. For firm profitability, the estimate was 0.166 and the standard error was 0.03. For fixed-asset ratio the estimate was 0.004 and standard error 0.05. For growth opportunities the estimate was -0.018 and standard error 0.025. And for nondebt tax shield the estimate was 0.649 and standard error 0.151. The F statistic was 44.11 and the adjusted R2 was 16.5%.10 Explain these results completely and offer a next step in this analysis. Assume a very large sample size.

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Basic Statistics: A multiple regression model was developed for predicting
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