The data in the file FinPortfolio.xls contain the company's portfolio performance data. Each observation includes the average return of the portfolio, the portfolio manager's Age and Tenure (Years in the company) as well their SAT score and whether they are MBA graduates (Yes:0, No:1). The total assets of each portfolio in thousands of dollars are also given.
The management of the financial company would like to determine to what extend all those characteristics explain the variation among the returns of individual portfolios. A regression using Age, Tenure, MBA, SAT and Assets as explanatory variables was suggested by the management. However the Business Analytics group suggests that using the logarithm of the assets [log (Assets)] is more appropriate and is used as a standard practice in industry.
i. Define the two regression models as they are described above and perform the corresponding regression analysis. Compare the results and justify why the model suggested by the Business Analytics group is the most appropriate.
PLEASE GIVE ME INSTRUCTIONS ON HOW TO SEND THE EXCEL FILEWITH THE DATA
Recently Asked Questions
- Question 2 In any given year, on the summer solstice, the tilt of the Earth's spin axis is pointed _____ compared to where it is pointed on winter solstice. A
- A company receives most of its revenues in May. The company is concerned that spring weather may be cooler than normal, which would adversely affect its
- Which of the following statements are true about both nitrogen and phosphorous: A They both enter the cycle through weathering of rocks. B Plants are the only