# Regression analysis

(A) Regression analysis - Show all work

1. Run a regression of profits on assets and sales and interpret your result. You can use excel

2. By using dummy variable approach, compare the effect of Japaneseââ?¬â?¢s assets and sales on profits with that of the United States.

3. Use alpha equal to 10%, please indicate your null and alternative hypothesis

**Note: Should not be more than 2 pages (single space)

https://brainmass.com/statistics/regression-analysis/step-by-step-regression-analysis-443032

#### Solution Preview

Regression Analysis

1. Run a regression of profits on assets and sales and interpret your result. You can use excel.

Coefficients Standard Error t Stat P-value

Intercept 1035.986 315.4844 3.283795 0.001938

Sale -0.00286 0.003633 -0.78726 0.435083

Assets 0.000183 0.000784 0.233594 0.816315

The estimated regression model is

Profit =1035.986 -0.00286*Sales +0.000183*Assets

The regression coefficients can be interpreted as

- For a unit increase in sales the Profits decrease by ...

#### Solution Summary

Step by step method for regression analysis is discussed here. Regression coefficients, coefficient of determination, scatter diagram and significance of regression model are explained in the solution.