Develop the equation of the regression model


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Q: Jensen, Solberg, and Zorn investigated the relationship of insider ownership, debt, and dividend policies in companies. One of their findings was that firms with high insider ownership choose lower levels of both debt and dividends. Shown here is a sample of data of these three variables for 11 different industries. Use the data to develop the equation of the regression model to predict insider ownership by debt ratio and dividend payout. Comment on the regression coefficients.

Industry Ownership Ratio Payout
Mining 8.2 14.2 10.4
Food and beverage 18.4 20.8 14.3
Furniture 11.8 18.6 12.1
Publishing 28.0 18.5 11.8
Petroleum refining 7.4 28.2 10.6
Glass and cement 15.4 24.7 12.6
Motor vehicle 15.7 15.6 12.6
Department store 18.4 21.7 7.2
Restaurant 13.4 23.0 11.3
Amusement 18.1 46.7 4.1
Hospital 10.0 35.8 9.0........

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Applied Statistics: Develop the equation of the regression model
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