# Stat 420 spring 2014 hw 7 2 university of illinois

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Unformatted text preview: l of signiﬁcance. What is the p-value of the test? STAT 420 Spring 2014: HW 7 2 University of Illinois Exercise 4 Can a corporation’s annual proﬁt be predicted from information about the company’s chief executive oﬃcer (CEO)? Forbes (May, 1999) presented data on company proﬁt (y ), (in \$ millions), CEO’s annual income (x1 ) (in \$ thousands), and percentage of the company’s stock owned by the CEO (x2 ). Company Gap Intel Gateway 2000 HJ Heinz Conseco Citicorp Cisco Systems General Electric America Online Computer Associates Lockheed Martin Bear Stearns Proﬁt (y , \$) CEO Income (x1 , \$) Stock (x2 , %) 824.5 Drexler 3,743 1.71 6,068.0 Grove 52,598 0.13 346.4 Waitt 855 43.93 746.9 O’Reilly 2,916 1.63 630.7 Hilbert 124,579 3.64 5,807.0 Reed 6,200 0.22 1,362.3 Chambers 560 0.06 9,296.0 Welch 40,626 0.03 254.0 Case 26,917 0.54 570.0 Wang 10,614 3.79 1,001.0 Augustine 2,533 0.01 538.6 Cayne 23,215 3.44 (a) Fit the interaction model yi = b0 + b1 xi1 + b2 xi2 + b3 xi1 xi2 + ei Give the least squares prediction equation and determine whether the o...
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## This homework help was uploaded on 04/03/2014 for the course STAT 420 taught by Professor Stepanov during the Spring '08 term at University of Illinois, Urbana Champaign.

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