A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the price-to-book value ratio, X₁ correspond to the return on equity, and X2 correspond to the growth percentage. Use the accompanying data to complete parts a. through e. below. Click the icon to view the business valuation data. a. Develop a regression model to predict price-to-book-value ratio based on return on equity. (Round to four decimal places as needed.)

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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Chapter4: Equations Of Linear Functions
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A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the price-to-book value ratio, X₁ correspond to the return on equity, and X2
correspond to the growth percentage. Use the accompanying data to complete parts a. through e. below.
Click the icon to view the business valuation data.
a. Develop a regression model to predict price-to-book-value ratio based on return on equity.
(Round to four decimal places as needed.)
Transcribed Image Text:A financial analyst engaged in business valuation obtained financial data on 71 drug companies. Let Y correspond to the price-to-book value ratio, X₁ correspond to the return on equity, and X2 correspond to the growth percentage. Use the accompanying data to complete parts a. through e. below. Click the icon to view the business valuation data. a. Develop a regression model to predict price-to-book-value ratio based on return on equity. (Round to four decimal places as needed.)
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