In a Multiple Regression Model with 4 Independent Variables and 25

question 12

Essay

In a multiple regression model with 4 independent variables and 25 observations,an observation's actual y value is 128.2,and the predicted value of the dependent variable based on the multiple regression equation is equal to 114.7.The computer output also shows that MSE is equal to 144 and the leverage value is 0.19.Calculate the Cook's D statistic for this observation.Based on the Cook's statistic value is this observation influential? Why?

---

Definitions:

Tax Expense

The total amount of taxes a company must pay on its income, including federal, state, and local taxes.

Ratio Analysis

A financial analysis tool used to assess a company's performance and financial health by analyzing various financial ratios derived from financial statements.

Marketability

The ease with which a product or service can be sold in the market.

Return on Total Assets

Return on total assets (ROTA) is a financial ratio that measures the profitability of a company relative to its total assets, indicating how efficiently the company is using its assets to generate profits.