Question

Write the regression model with the

y = asset writedown

Variable Predicted sign Coefficient Standard error Significance Exp (coefficient) (one tailed)

PROPNOCE + 0.837 0.528 0.058 0.164

LOGTTA + 0.798 0.197 0.000 0.411

MVEBVE + 0.196 0.012 0.082 0.983

Answer 1

Solution

Given in the question

Dependent variable = Asset writedown

Independent variables =PROPNOCE, LOGTTA, MVEBVE

And regression coefficient are given for every independent variables in table

So regression model can be written as follows:

Asset writedown = 0.837×PROPNOCE + 0.798×LOGTTA + 0.196×MVEBVE

Here as we will increase or decrease PROPNOCE by one unit than Asset writedown will increase or decrease by 0.837

As Logtaa increase or decrease by 1 unit than Asset writedown will be increase or decrease by 0.798 units.

As MVEBVE increase or decrease by 1 unit than Asset writedown will increase or decrease by 0.196