Econometric Report

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Description

Financial Database
The financial database contains observations on eight variables for 100 companies. The variables are Type of Industry, Total Revenues ($ millions), Total Assets ($ millions), Return on Equity (%), Earnings per Share ($), Average Yield (%), Dividends per Share ($), and Average Price per Earnings (P/E) ratio. The companies represent seven different types of industries. The variable Type displays a company's industry type as:
1 = apparel (default)
2 = chemical
3 = electric power
4 = grocery
5 = healthcare products
6 = insurance
7 = petroleum
Develop a regression model using the Financial database. Predict the average P/E ratio for a company.

Original Data

Observation # Company Type Average P/E Ratio Total Revenues Total Assets Return on Equity Earnings per Share Chemical Electrical Power Grocery Healthcare Products Insurance Petroleum Average Yield Dividends per Share
1 AFLAC 6 11.5 7251 29454 17.1 2.08 0 0 0 0 1 0 0.9 0.22
2 Albertson's 4 19 14690 5219 21.4 2.08 0 0 1 0 0 0 1.6 0.63
3 Allstate 6 10.6 20106 80918 20.1 3.56 0 0 0 0 1 0 1 0.36
4 Amerada Hess 7 698.3 8340 7935 0.2 0.08 0 0 0 0 0 1 1.1 0.6
5 American General 6 21.2 3362 80620 7.1 2.19 0 0 0 0 1 0 3 1.4
6 American Stores 4 23.5 19139 8536 12.2 1.01 0 0 1 0 0 0 1.4 0.34
7 Amoco 7 16.1 36287 32489 16.7 2.76 0 0 0 0 0 1 3.1 1.4
8 Arco Chemical 2 40.4 3995 4116 6.2 1.14 1 0 0 0 0 0 6.1 2.8
9 Ashland 7 12.4 14319 7777 9.5 3.8 0 0 0 0 0 1 2.3 1.1
10 Atlantic Richfield 7 3.8 19272 25322 21.8 5.41 0 0 0 0 0 1 3.8 2.83
11 Bausch & Lomb 5 2.6 1916 2773 6 0.89 0 0 0 1 0 0 2.6 1.04
12 Baxter International 5 47.2 6138 8707 11.5 1.06 0 0 0 1 0 0 2.3 1.13
13 Bristol-Myers Squibb 5 24.1 16701 14977 44.4 3.14 0 0 0 1 0 0 2 1.52
14 Burlington Coat 1 12.9 1777 775 12.3 1.18 0 0 0 0 0 0 0.1 0.02
15 Central Maine Power 3 79.6 954 2299 2.4 0.16 0 1 0 0 0 0 7.8 0.9
16 Chevron 7 15.2 41950 35473 18.6 4.95 0 0 0 0 0 1 3 2.28
17 CIGNA 6 11.4 14935 108199 13.7 4.88 0 0 0 0 1 0 2 1.1
18 Cinergy 3 22.4 4353 8858 13.3 1.59 0 1 0 0 0 0 5.1 1.8
19 Dayton Hudson 1 16.2 27757 14191 18 1.7 0 0 0 0 0 0 1.2 0.33
20 Dillard's 1 15.7 6817 5592 9.2 2.31 0 0 0 0 0 0 0.4 0.16
21 Dominion Resources 3 17.7 7678 20193 7.9 2.15 0 1 0 0 0 0 6.8 2.58
22 Dow Chemical 2 11.6 20018 24040 23.6 7.7 1 0 0 0 0 0 3.6 3.24
23 DPL 3 14.3 1356 3585 13.9 1.2 0 1 0 0 0 0 5.3 0.91
24 E. I. DuPont DeNemours 2 27.9 46653 42942 21.3 2.08 1 0 0 0 0 0 2.1 1.23
25 Eastman Chemical 2 16 4678 5778 16.3 3.63 1 0 0 0 0 0 3 1.76
26 Edison International 3 13.6 9235 25101 12.3 1.73 0 1 0 0 0 0 4.2 1
27 Engelhard 2 61.8 3631 2586 6.1 0.33 1 0 0 0 0 0 1.9 0.38
28 Entergy 3 25.4 9562 27001 4.2 1.03 0 1 0 0 0 0 6.9 1.8
29 Equitable 6 13.4 9666 151438 12.3 2.86 0 0 0 0 1 0 0.5 0.2
30 Ethyl 7 12.6 1064 1067 53.6 0.71 0 0 0 0 0 1 5.6 0.5
31 Exxon 7 17.1 137242 96064 19.4 3.37 0 0 0 0 0 1 2.8 1.63
32 FPL Group 3 14.4 6369 12449 12.2 3.57 0 1 0 0 0 0 3.7 1.92
33 The GAP 1 22 6508 3338 33.7 1.3 0 0 0 0 0 0 0.7 0.2
34 Georgia Gulf 2 11.8 966 613 228 2.39 1 0 0 0 0 0 1.1 0.32
35 GIANT Food 4 26.9 4231 1522 7.9 1.18 0 0 1 0 0 0 2.4 0.78
36 A & P 4 17.8 10262 2995 6.9 1.66 0 0 1 0 0 0 1.2 0.35
37 Great Lakes Chemicals 2 40.5 1311 2270 5.5 1.19 1 0 0 0 0 0 1.3 0.62
38 Green Mountain Power Company 3 14 179 326 8.3 1.57 0 1 0 0 0 0 7.3 1.61
39 Hannaford Bros. 4 26.6 3226 1227 9.9 1.4 0 0 1 0 0 0 1.5 0.54
40 Hercules 2 14.5 1866 2411 47 3.18 1 0 0 0 0 0 2.2 1
41 Houston Industries 3 13.7 6873 18415 8 1.66 0 1 0 0 0 0 6.6 1.5
42 Jefferson-Pilot 6 13.3 2578 23131 14.5 3.47 0 0 0 0 1 0 2.3 1.04
43 Johnson & Johnson 5 24.1 22629 21453 26.7 2.41 0 0 0 1 0 0 1.5 0.85
44 Liberty 6 12.7 660 3185 11.1 3.34 0 0 0 0 1 0 1.8 0.77
45 The Limited 1 26.7 9189 4301 10.6 0.79 0 0 0 0 0 0 2.3 0.48
46 Lincoln National 6 300.2 4899 77175 0.4 0.21 0 0 0 0 1 0 3.1 1.96
47 Lubrizol 2 14.5 1674 1462 19 2.66 1 0 0 0 0 0 2.6 1.01
48 Lyondell Petrochemical 7 6.4 3010 1559 46.2 3.58 0 0 0 0 0 1 3.9 0.9
49 Mallinkrodt 5 16 1868 2988 14.8 2.47 0 0 0 1 0 0 1.7 0.66
50 May Department Stores 1 16.2 12685 9930 20.5 3.11 0 0 0 0 0 0 2.4 1.2
51 McKesson 5 26 20857 5608 11 1.59 0 0 0 1 0 0 1.2 0.5
52 Mercantile Stores 1 16.3 3144 2178 7.9 3.53 0 0 0 0 0 0 2.1 1.19
53 Merck 5 26.6 23637 25812 36.6 3.74 0 0 0 1 0 0 1.7 1.69
54 Millennium Chemicals 2 8.3 3048 4326 12.6 2.47 1 0 0 0 0 0 2.9 0.6
55 Mobil 7 17.2 65906 43559 16.8 4.01 0 0 0 0 0 1 3.1 2.12
56 Monsanto 2 90.7 7514 10774 7.2 0.48 1 0 0 0 0 0 1.1 0.5
57 Morton 2 25.2 2388 2805 12.3 1.48 1 0 0 0 0 0 1 0.36
58 Murphy Oil 7 18 2138 2238 12.3 2.94 0 0 0 0 0 1 2.6 1.35
59 Mylan Laboratories 5 22.4 555 848 13.5 0.82 0 0 0 1 0 0 0.9 0.16
60 NALCO Chemical 2 18.3 1434 1441 25 2.1 1 0 0 0 0 0 2.6 1
61 Nevada Power 3 14.2 799 2339 10.1 1.65 0 1 0 0 0 0 6.8 1.6
62 NIPSCO 3 14.4 2587 4937 14.1 1.53 0 1 0 0 0 0 4.1 0.9
63 Olin 2 14.5 2410 1946 17.4 3 1 0 0 0 0 0 2.8 1.2
64 Orion Capital 6 9.8 1591 3884 16 4.15 0 0 0 0 1 0 1.5 0.6
65 Owens & Minor 5 21.7 3117 713 9.4 0.6 0 0 0 1 0 0 1.4 0.18
66 Pacific Corporation 3 34.2 6278 13880 5.2 0.68 0 1 0 0 0 0 4.6 1.08
67 J. C. Penney 1 26.9 30546 23493 7.7 2.1 0 0 0 0 0 0 3.8 2.13
68 Pennzoil 7 17.1 2654 4406 15.8 3.76 0 0 0 0 0 1 1.6 1
69 Pfizer 5 35.4 12504 15336 27.9 1.7 0 0 0 1 0 0 1.1 0.68
70 Pharmacia & Upjohn 5 56.2 6710 10380 5.8 0.61 0 0 0 1 0 0 3.1 1.08
71 Phillips Petroleum 7 12.4 15424 13860 19.9 3.61 0 0 0 0 0 1 3 1.34
72 Poe & Brown 6 16.3 129 194 25.1 1.48 0 0 0 0 1 0 1.5 0.35
73 PPG 2 14.7 7379 6868 28.5 3.94 1 0 0 0 0 0 2.3 1.33
74 PP&L Resources 3 12 3049 9485 11.4 1.8 0 1 0 0 0 0 7.7 1.67
75 Progressive 6 17 4190 7560 18.7 5.31 0 0 0 0 1 0 0.3 0.24
76 Rohm & Haas 2 13.4 3999 3900 19.8 2.13 1 0 0 0 0 0 2.2 0.63
77 Ruddick 4 17 2300 885 12.5 1.02 0 0 1 0 0 0 1.8 0.32
78 Schering-Plough 5 24.6 6778 6507 51.2 1.95 0 0 0 1 0 0 1.5 0.74
79 Sears, Roebuck 1 17.4 41296 38700 20.3 2.99 0 0 0 0 0 0 1.8 0.92
80 Stryker 5 27.2 980 985 20.5 1.28 0 0 0 1 0 0 0.3 0.11
81 Sun 7 13 10531 4667 18 2.7 0 0 0 0 0 1 2.8 1
82 Sunamerica 6 19.5 2114 35637 14.7 1.8 0 0 0 0 1 0 0.9 0.3
83 Texaco 7 11.5 46667 29600 20.9 4.87 0 0 0 0 0 1 3.1 1.75
84 The TJX Companies 1 8.2 7389 2610 26.3 1.75 0 0 0 0 0 0 0.6 0.09
85 Torchmark 6 14.2 2283 10967 17.5 2.39 0 0 0 0 1 0 1.7 0.59
86 Tosco 7 23 13282 5975 10.9 1.37 0 0 0 0 0 1 0.8 0.24
87 Travelers 6 17 37609 386555 14.9 2.54 0 0 0 0 1 0 0.9 0.4
88 Ultramar Diamond Shamrock 7 16.1 10882 5595 9.5 1.94 0 0 0 0 0 1 3.5 1.1
89 Union Carbide 2 10.7 6502 6964 28.8 4.53 1 0 0 0 0 0 1.6 0.79
90 United States Surgical Corporation 5 29 1172 1726 7.5 1.21 0 0 0 1 0 0 0.5 0.16
91 UNOCAL 7 15.5 6064 7530 28.9 2.65 0 0 0 0 0 1 2 0.8
92 UNUM 6 17 4077 13200 15.2 2.59 0 0 0 0 1 0 1.3 0.56
93 USX-Marathon 7 19.8 15754 10565 12.6 1.58 0 0 0 0 0 1 2.4 0.76
94 Valero Energy 7 17.2 5756 2493 9.6 2.03 0 0 0 0 0 1 1.2 0.42
95 Warner-Lambert 5 35.7 8180 8031 30.7 1.04 0 0 0 1 0 0 1.4 0.51
96 WEIS Markets 4 16.9 1819 972 9.2 1.87 0 0 1 0 0 0 3 0.94
97 Wellman 2 20.5 1083 1319 4.8 0.97 1 0 0 0 0 0 1.8 0.35
98 Winn-Dixie Stores 4 27.2 13219 2921 15.3 1.36 0 0 1 0 0 0 2.7 0.98
99 WITCO 2 24.9 2187 2298 14 1.55 1 0 0 0 0 0 2.9 1.12
100 Zenith Nation Insurance 6 17 601 1252 7.8 1.57 0 0 0 0 1 0 3.7 1

Correlation Matrix

Average P/E Ratio Total Revenues Total Assets Return on Equity Earnings per Share
Average P/E Ratio 1
Total Revenues -0.0386 1
Total Assets 0.0117 0.3890 1
Return on Equity -0.1298 -0.0053 -0.0533 1
Earnings per Share -0.2942 0.3064707201 0.1678 0.1605 1

Regression Output

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.4119
R Square 0.1696
Adjusted R Square 0.0763
Standard Error 71.3390
Observations 100
ANOVA
df SS MS F Significance F
Regression 10 92537.7684 9253.7768 1.8183 0.0686
Residual 89 452943.3975 5089.2517
Total 99 545481.1659
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept (Average P/E Ratio) 69.0967 26.2344 2.6338 0.0100 16.9695 121.2239 16.9695 121.2239
Total Revenues -0.0001 0.0005 -0.1047 0.9169 -0.0011 0.0010 -0.0011 0.0010
Total Assets 0.0001 0.0002 0.2564 0.7983 -0.0004 0.0005 -0.0004 0.0005
Return on Equity -0.2814 0.3189 -0.8826 0.3798 -0.9150 0.3521 -0.9150 0.3521
Earnings per Share -22.3048 6.2400 -3.5745 0.0006 -34.7036 -9.9061 -34.7036 -9.9061
Chemical 19.3401 28.5430 0.6776 0.4998 -37.3743 76.0544 -37.3743 76.0544
Electrical Power -9.6184 30.5894 -0.3144 0.7539 -70.3988 51.1621 -70.3988 51.1621
Grocery -11.2802 34.1105 -0.3307 0.7417 -79.0570 56.4966 -79.0570 56.4966
Healthcare Products 1.2710 29.3735 0.0433 0.9656 -57.0935 59.6356 -57.0935 59.6356
Insurance 26.4798 32.2172 0.8219 0.4133 -37.5351 90.4948 -37.5351 90.4948
Petroleum 53.1880 28.5104 1.8656 0.0654 -3.4614 109.8375 -3.4614 109.8375
RESIDUAL OUTPUT
Observation Predicted Average P/E Ratio Residuals Standard Residuals
1 45.5308 -34.0308 -0.5031
2 4.8643 14.1357 0.2090
3 13.6935 -3.0935 -0.0457
4 120.4038 577.8962 8.5437
5 48.8197 -27.6197 -0.4083
6 31.2496 -7.7496 -0.1146
7 55.7401 -39.6401 -0.5860
8 61.2618 -20.8618 -0.3084
9 34.4735 -22.0735 -0.3263
10 -4.2425 8.0425 0.1189
11 48.8690 -46.2690 -0.6840
12 43.6104 3.5896 0.0531
13 -12.2945 36.3945 0.5381
14 39.2582 -26.3582 -0.3897
15 55.3033 24.2967 0.3592
16 6.2029 8.9971 0.1330
17 -12.2152 23.6152 0.3491
18 20.4996 1.9004 0.0281
19 25.3306 -9.1306 -0.1350
20 14.9030 0.7970 0.0118
21 9.9459 7.7541 0.1146
22 -89.7843 101.3843 1.4989
23 28.9157 -14.6157 -0.2161
24 35.7459 -7.8459 -0.1160
25 2.9306 13.0694 0.1932
26 18.2497 -4.6497 -0.0687
27 79.2958 -17.4958 -0.2587
28 36.2254 -10.8254 -0.1600
29 35.8185 -22.4185 -0.3314
30 91.3608 -78.7608 -1.1644
31 39.1642 -22.0642 -0.3262
32 -23.2754 37.6754 0.5570
33 30.4331 -8.4331 -0.1247
34 -29.0613 40.8613 0.6041
35 29.1202 -2.2202 -0.0328
36 18.4401 -0.6401 -0.0095
37 60.3940 -19.8940 -0.2941
38 22.1312 -8.1312 -0.1202
39 23.6902 2.9098 0.0430
40 4.3044 10.1956 0.1507
41 20.7973 -7.0973 -0.1049
42 15.1819 -1.8819 -0.0278
43 8.9852 15.1148 0.2235
44 18.0869 -5.3869 -0.0796
45 48.2127 -21.5127 -0.3180
46 94.6013 205.5987 3.0396
47 23.7436 -9.2436 -0.1367
48 29.3472 -22.9472 -0.3393
49 11.1647 4.8353 0.0715
50 -6.2155 22.4155 0.3314
51 30.9516 -4.9516 -0.0732
52 -11.9210 28.2210 0.4172
53 -23.2911 49.8911 0.7376
54 29.8586 -21.5586 -0.3187
55 26.7804 -9.5804 -0.1416
56 75.8600 14.8400 0.2194
57 51.9807 -26.7807 -0.3959
58 53.2473 -35.2473 -0.5211
59 48.2926 -25.8926 -0.3828
60 34.5578 -16.2578 -0.2404
61 19.9127 -5.7127 -0.0845
62 21.5024 -7.1024 -0.1050
63 16.5952 -2.0952 -0.0310
64 -1.3735 11.1735 0.1652
65 54.2048 -32.5048 -0.4806
66 43.2365 -9.0365 -0.1336
67 19.6465 7.2535 0.1072
68 34.0588 -16.9588 -0.2507
69 24.7193 10.6807 0.1579
70 55.3089 0.8911 0.0132
71 36.0459 -23.6459 -0.3496
72 55.5044 -39.2044 -0.5796
73 -7.5090 22.2090 0.3283
74 16.4556 -4.4556 -0.0659
75 -27.9558 44.9558 0.6646
76 35.3407 -21.9407 -0.3244
77 31.4674 -14.4674 -0.2139
78 12.4339 12.1661 0.1799
79 -3.5389 20.9389 0.3096
80 36.0461 -8.8461 -0.1308
81 56.6611 -43.6611 -0.6455
82 53.0634 -33.5634 -0.4962
83 6.7678 4.7322 0.0700
84 22.3913 -14.1913 -0.2098
85 37.7981 -23.5981 -0.3489
86 88.2420 -65.2420 -0.9645
87 53.1464 -36.1464 -0.5344
88 76.0348 -59.9348 -0.8861
89 -20.6997 31.3997 0.4642
90 41.2949 -12.2949 -0.1818
91 55.1074 -39.6074 -0.5856
92 34.0037 -17.0037 -0.2514
93 83.1863 -63.3863 -0.9371
94 74.1181 -56.9181 -0.8415
95 38.5041 -2.8041 -0.0415
96 13.4682 3.4318 0.0507
97 65.4603 -44.9603 -0.6647
98 22.6000 4.6000 0.0680
99 49.9251 -25.0251 -0.3700
100 58.3959 -41.3959 -0.6120

Linearity- Earnings per Share

Earnings per Share Residual Plot

-34.03079805694577 14.135726719934913 -3.0935062864350851 577.89621693180948 -27.619697592103368 -7.7496195128943057 -39.64005114833887 -20.861757522073368 -22.073539539196481 8.0424596078511108 -46.268951332772602 3.5895554437542003 36.394494490751754 -26.358171553378064 24.296698915960206 8.9970822230622396 23.615217580646949 1.9004239415884854 -9.1305770632870882 0.79701261523599598 7.7541267001625549 101.38427936460708 -14.615677197794209 -7.8459234858847466 13.069432549450834 -4.6497206502132986 -17.495801014191528 -10.825438122850812 -22.418517805509815 -78.760836861792228 -22.064163967381234 37.675419843934428 -8.4331028690105363 40.861291132414756 -2.2202416195500234 -0.64006539639150262 -19.894021925939271 -8.131229650870111 2.9097846344210723 10.195596388800542 -7.0973162194932478 -1.8819135313874824 15.114793899712488 -5.3868585973886027 -21.512709414438557 205.5987398933479 -9.24356696765037 -22.947182876734566 4.835293863928122 22.415537224260422 -4.9515866442420844 28.220988036551351 49.891067516972932 -21.55861055436533 -9.5804444 924687608 14.840009983326397 -26.780650546152931 -35.247344572731137 -25.892645640077745 -16.257770436664696 -5.7127113045848965 -7.1024342455285403 -2.0952107259163775 11.173512343576036 -32.504823930368403 -9.0365045058934967 7.2534573007968035 -16.958777953357206 10.680713912085238 0.89108295706299856 -23.645920159533311 -39.20440015644796 22.20903521389662 -4.4556375044171688 44.955757563779358 -21.940707901105561 -14.467355886332967 12.166106500780003 20.938862316224316 -8.846107507376697 -43.661092866021278 -33.563440106850464 4.7321893578084726 -14.19129659295481 -23.59811872205859 -65.242009462553298 -36.146369476903658 -59.934810066811117 31.399737546130247 -12.294861281783803 -39.607375540679833 -17.003696007518215 -63.386268144000866 -56.918130468930457 -2.8041322484265194 3.4317788336714923 -44.960269790968454 4.5999922271412039 -25.025091307713971 -41.395911041801156

Earnings per Share

Residuals

Linearity- Total Revenues

Total Revenues Residual Plot

7251 14690 20106 8340 3362 19139 36287 3995 14319 19272 1916 6138 16701 1777 954 41950 14935 4353 27757 6817 7678 20018 1356 46653 4678 9235 3631 9562 9666 1064 137242 6369 6508 966 4231 10262 1311 179 3226 1866 6873 2578 22629 660 9189 4899 1674 3010 1868 12685 20857 3144 23637 3048 65906 7514 2388 2138 555 1434 799 2587 2410 1591 3117 6278 30546 2654 12504 6710 15424 129 7379 3049 4190 3999 2300 6778 41296 980 10531 2114 46667 7389 2283 13282 37609 10882 6502 1172 6064 4077 15754 5756 8180 1819 1083 13219 2187 601 -34.03079805694577 14.135726719934913 -3.0935062864350851 577.89621693180948 -27.619697592103368 -7.7496195128943057 -39.64005114833887 -20.861757522073368 -22.073539539196481 8.0424596078511108 -46.268951332772602 3.5895554437542003 36.394494490751754 -26.358171553378064 24.296698915960206 8.9970822230622396 23.615217580646949 1.9004239415884854 -9.1305770632870882 0.79701261523599598 7.7541267001625549 101.38427936460708 -14.615677197794209 -7.8459234858847466 13.069432549450834 -4.6497206502132986 -17.495801014191528 -10.825438122850812 -22.418517805509815 -78.760836861792228 -22.064163967381234 37.675419843934428 -8.4331028690105363 40.861291132414756 -2.2202416195500234 -0.64006539639150262 -19.894021925939271 -8.131229650870111 2.9097846344210723 10.195596388800542 -7.0973162194932478 -1.8819135313874824 15.114793899712488 -5.3868585973886027 -21.512709414438557 205.5987398933479 -9.24356696765037 -22.947182876734566 4.835293863928122 22.415537224260422 -4.9515866442420844 28.220988036551351 49.891067516972932 -21.55861055436533 -9.5804444924687608 14.840009983326397 -26.780650546152931 -35.247344572731137 -25.892645640077745 -16.257770436664696 -5.7127 113045848965 -7.1024342455285403 -2.0952107259163775 11.173512343576036 -32.504823930368403 -9.0365045058934967 7.2534573007968035 -16.958777953357206 10.680713912085238 0.89108295706299856 -23.645920159533311 -39.20440015644796 22.20903521389662 -4.4556375044171688 44.955757563779358 -21.940707901105561 -14.467355886332967 12.166106500780003 20.938862316224316 -8.846107507376697 -43.661092866021278 -33.563440106850464 4.7321893578084726 -14.19129659295481 -23.59811872205859 -65.242009462553298 -36.146369476903658 -59.934810066811117 31.399737546130247 -12.294861281783803 -39.607375540679833 -17.003696007518215 -63.386268144000866 -56.918130468930457 -2.8041322484265194 3.4317788336714923 -44.960269790968454 4.5999922271412039 -25.025091307713971 -41.395911041801156

Total Revenues

Residuals

Linearity- Return on Equity

Return on Equity Residual Plot

Upper 95% 121.2239 0.0010 0.0005 0.3521 -9.9061 76.0544 51.1621 56.4966 59.6356 90.4948 109.8375 -34.03079805694577 14.135726719934913 -3.0935062864350851 577.89621693180948 -27.6196 97592103368 -7.7496195128943057 -39.64005114833887 -20.861757522073368 -22.073539539196481 8.0424596078511108 -46.268951332772602 3.5895554437542003 36.394494490751754 -26.358171553378064 24.296698915960206 8.9970822230622396 23.615217580646949 1.9004239415884854 -9.1305770632870882 0.79701261523599598 7.7541267001625549 101.38427936460708 -14.615677197794209 -7.8459234858847466 13.069432549450834 -4.6497206502132986 -17.495801014191528 -10.825438122850812 -22.418517805509815 -78.760836861792228 -22.064163967381234 37.675419843934428 -8.4331028690105363 40.861291132414756 -2.2202416195500234 -0.64006539639150262 -19.894021925939271 -8.131229650870111 2.9097846344210723 10.195596388800542 -7.0973162194932478 -1.8819135313874824 15.114793899712488 -5.3868585973886027 -21.512709414438557 205.5987398933479 -9.24356696765037 -22.947182876734566 4.835293863928122 22.415537224260422 -4.9515866442420844 28.220988036551351 49.891067516972932 -21.55861055436533 -9.5804444924687608 14.840009983326397 -26.780650546152931 -35.247344572731137 -25.892645640077745 -16.257770436664696 -5.7127113045848965 -7.1024342455285403 -2.0952107259163775 11.173512343576036 -32.504823930368403 -9.0365045058934967 7.2534573007968035 -16.958777953357206 10.680713912085238 0.89108295706299856 -23.645920159533311 -39.20440015644796 22.20903521389662 -4.4556375044171688 44.955757563779358 -21.940707901105561 -14.467355886332967 12.166106500780003 20.938862316224316 -8.846107507376697 -43.661092866021278 -33.563440106850464 4.7321893578084726 -14.19129659295481 -23.59811872205859 -65.242009462553298 -36.146369476903658 -59.934810066811117 31.399737546130247 -12.294861281783803 -39.607375540679833 -17.003696007518215 -63.386268144000866 -56.918130468930457 -2.8041322484265194 3.4317788336714923 -44.960269790968454 4.5999922271412039 -25.025091307713971 -41.395911041801156

Return on Equity

Residuals

Linearity- Total Assets

Total Assets Residual Plot

Significance F 0.0686 Lower 95% 16.9695 -0.0011 -0.0004 -0.9150 -34.7036 -37.3743 -70.3988 -79.0570 -57.0935 -37.5351 -3.4614 -34.03079805694577 14.135726719934913 -3.0935062864350851 577.89621693180948 -27.619697592103368 -7.7496195128943057 -39.64005114833887 -20.861757522073368 -22.073539539196481 8.0424596078511108 -46.268951332772602 3.5895554437542003 36.394494490751754 -26.358171553378064 24.296698915960206 8.9970822230622396 23.615217580646949 1.9004239415884854 -9.1305770632870882 0.79701261523599598 7.7541267001625549 101.38427936460708 -14.615677197794209 -7.8459234858847466 13.069432549450834 -4.6497206502132986 -17.495801014191528 -10.825438122850812 -22.418517805509815 -78.760836861792228 -22.064163967381234 37.675419843934428 -8.4331028690105363 40.861291132414756 -2.2202416195500234 -0.64006539639150262 -19.894021925939271 -8.131229650870111 2.9097846344210723 10.195596388800542 -7.0973162194932478 -1.8819135313874824 15.114793899 712488 -5.3868585973886027 -21.512709414438557 205.5987398933479 -9.24356696765037 -22.947182876734566 4.835293863928122 22.415537224260422 -4.9515866442420844 28.220988036551351 49.891067516972932 -21.55861055436533 -9.5804444924687608 14.840009983326397 -26.780650546152931 -35.247344572731137 -25.892645640077745 -16.257770436664696 -5.7127113045848965 -7.1024342455285403 -2.0952107259163775 11.173512343576036 -32.504823930368403 -9.0365045058934967 7.2534573007968035 -16.958777953357206 10.680713912085238 0.89108295706299856 -23.645920159533311 -39.20440015644796 22.20903521389662 -4.4556375044171688 44.955757563779358 -21.940707901105561 -14.467355886332967 12.166106500780003 20.938862316224316 -8.846107507376697 -43.661092866021278 -33.563440106850464 4. 7321893578084726 -14.19129659295481 -23.59811872205859 -65.242009462553298 -36.146369476903658 -59.934810066811117 31.399737546130247 -12.294861281783803 -39.607375540679833 -17.003696007518215 -63.386268144000866 -56.918130468930457 -2.8041322484265194 3.4317788336714923 -44.960269790968454 4.5999922271412039 -25.025091307713971 -41.395911041801156

Total Assets

Residuals

Homoscedasticity

Homoscedasticity Scatter Plot

Residuals 45.53079805694577 4.8642732800650865 13.693506286435085 120.40378306819044 48.819697592103367 31.249619512894306 55.740051148338871 61.261757522073367 34.47353953919648 -4.2424596078511101 48.868951332772603 43.610444556245803 -12.294494490751752 39.258171553378062 55.303301084039788 6.2029177769377597 -12.215217580646947 20.499576058411513 25.330577063287087 14.902987384764003 9.9458732998374444 -89.784279364607087 28.91567719779421 35.745923485884745 2.9305674505491659 18.249720650213298 79.295801014191525 36.225438122850811 35.818517805509813 91.360836861792 222 39.164163967381235 -23.275419843934429 30.433102869010536 -29.061291132414755 29.120241619550022 18.440065396391503 60.394021925939271 22.131229650870111 23.690215365578929 4.3044036111994579 20.797316219493247 15.181913531387483 8.9852061002875132 18.086858597388602 48.212709414438557 94.601260106652092 23.74356696765037 29.347182876734564 11.164706136071878 -6.215537224260423 30.951586644242084 -11.92098803655135 -23.29106751697293 29.858610554365331 26.78044449246876 75.859990016673606 51.98065054615293 53.247344572731137 48.292645640077744 34.557770436664697 19.912711304584896 21.502434245528541 16.595210725916377 -1.373512343576035 54.204823930368399 43.2365045058935 19.646542699203195 34.058777953357207 24.71928608791476 55.308917042937004 36.04592015953331 55.504400156447957 -7.5090352138966203 16.455637504417169 -27.955757563779354 35.34070790110556 31.467355886332967 12.433893499219998 -3.5388623162243178 36.046107507376696 56.661092866021278 53.063440106850464 6.7678106421915274 22.391296592954809 37.798118722058589 88.242009462553298 53.146369476903658 76.034810066811119 -20.699737546130248 41.294861281783803 55.107375540679833 34.003696007518215 83.186268144000863 74.11813046893046 38.504132248426522 13.468221166328506 65.460269790968454 22.600007772858795 49.92509130771397 58.395911041801156 -34.03079805694577 14.135726719934913 -3.0935062864350851 577.89621693180948 -27.619697592103368 -7.7496195128943057 -39.64005114833887 -20.861757522073368 -22.073539539196481 8.0424596078511108 -46.268951332772602 3.5895554437542003 36.394494490751754 -26.358171553378064 24.296698915960206 8.9970822230622396 23.615217580646949 1.9004239415884854 -9.1305770632870882 0.79701261523599598 7.7541267001625549 101.38427936460708 -14.615677197794209 -7.8459234858847466 13.069432549450834 -4.6497206502132986 -17.495801014191528 -10.825438122850812 -22.418517805509815 -78.760836861792228 -22.064163967381234 37.675419843934428 -8.4331028690105363 40.861291132414756 -2.2202416195500234 -0.64006539639150262 -19.894021925939271 -8.131229650870111 2.9097846344210723 10.195596388800542 -7.0973162194932478 -1.8819135313874824 15.114793899712488 -5.3868585973886027 -21.512709414438557 205.5987398933479 -9.243566967650 37 -22.947182876734566 4.835293863928122 22.415537224260422 -4.9515866442420844 28.220988036551351 49.891067516972932 -21.55861055436533 -9.5804444924687608 14.840009983326397 -26.780650546152931 -35.247344572731137 -25.892645640077745 -16.257770436664696 -5.7127113045848965 -7.1024342455285403 -2.0952107259163775 11.173512343576036 -32.504823930368403 -9.0365045058934967 7.2534573007968035 -16.958777953357206 10.680713912085238 0.89108295706299856 -23.645920159533311 -39.20440015644796 22.20903521389662 -4.4556375044171688 44.955757563779358 -21.940707901105561 -14.467355886332967 12.166106500780003 20.938862316224316 -8.846107507376697 -43.661092866021278 -33.563440106850464 4.7321893578084726 -14.19129659295481 -23.59811872205859 -65.242009462553298 -36.1 46369476903658 -59.934810066811117 31.399737546130247 -12.294861281783803 -39.607375540679833 -17.003696007518215 -63.386268144000866 -56.918130468930457 -2.8041322484265194 3.4317788336714923 -44.960269790968454 4.5999922271412039 -25.025091307713971 -41.395911041801156

Predicted Average P/E Ratio

Residuals

Normality

Histogram of Standardized Residulas

Total

-1.25 to < -0.75 -0.75 to < -0.25 -0.25 to < 0.25 0.25 to < 0.75 1.25 to < 1.75 2.75 to < 3.25 8.25 to < 8.75 5 31 49 12 1 1 1

Pivot Std Resids

Row Labels Count of Standard Residuals
-1.25 to < -0.75 5
-0.75 to < -0.25 31
-0.25 to < 0.25 49
0.25 to < 0.75 12
1.25 to < 1.75 1
2.75 to < 3.25 1
8.25 to < 8.75 1
Grand Total 100

Aux #1

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.6297
R Square 0.3965
Adjusted R Square 0.3361 VIF1 1.6569527962
Standard Error 14241.6689
Observations 100
ANOVA
df SS MS F Significance F
Regression 9 1.2E+10 1.3E+09 6.6E+00 3.7E-07
Residual 90 1.8E+10 2.0E+08
Total 99 3.0E+10
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 6908.3471 5186.3988 1.3320 0.1862 -3395.3393 17212.0335 -3395.3393 17212.0335
Total Assets 0.1895 0.0361 5.2439 0.0000 0.1177 0.2613 0.1177 0.2613
Return on Equity -25.9738 63.5986 -0.4084 0.6839 -152.3235 100.3759 -152.3235 100.3759
Earnings per Share 3007.3106 1204.7070 2.4963 0.0144 613.9498 5400.6714 613.9498 5400.6714
Grocery -2916.3117 6802.6630 -0.4287 0.6692 -16430.9891 10598.3657 -16430.9891 10598.3657
Electrical Power -8973.2440 6032.9718 -1.4874 0.1404 -20958.7955 3012.3075 -20958.7955 3012.3075
Chemical -8422.0928 5628.5646 -1.4963 0.1381 -19604.2188 2760.0332 -19604.2188 2760.0332
Healthcare Products -3958.7977 5849.0736 -0.6768 0.5003 -15579.0034 7661.4080 -15579.0034 7661.4080
Insurance -19638.7446 6089.3930 -3.2251 0.0018 -31736.3866 -7541.1025 -31736.3866 -7541.1025
Petroleum 5358.5648 5663.5304 0.9462 0.3466 -5893.0270 16610.1565 -5893.0270 16610.1565

Aux #2

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.6270
R Square 0.3931 VIF2 1.6477259174
Adjusted R Square 0.3324
Standard Error 36358.4222
Observations 100
ANOVA
df SS MS F Significance F
Regression 9 7.7E+10 8.6E+09 6.5E+00 4.7E-07
Residual 90 1.2E+11 1.3E+09
Total 99 2.0E+11
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -4431.2553 13362.3874 -0.3316 0.7409 -30977.9702 22115.4596 -30977.9702 22115.4596
Return on Equity -7.6732 162.5131 -0.0472 0.9624 -330.5337 315.1874 -330.5337 315.1874
Earnings per Share -1492.6678 3176.3682 -0.4699 0.6395 -7803.0777 4817.7421 -7803.0777 4817.7421
Grocery -916.7940 17384.3864 -0.0527 0.9581 -35453.9119 33620.3239 -35453.9119 33620.3239
Electrical Power 12657.4979 15532.8895 0.8149 0.4173 -18201.2983 43516.2940 -18201.2983 43516.2940
Chemical 7143.0501 14527.6448 0.4917 0.6241 -21718.6519 36004.7521 -21718.6519 36004.7521
Healthcare Products 4477.0749 14962.9696 0.2992 0.7655 -25249.4758 34203.6256 -25249.4758 34203.6256
Insurance 63061.2579 15014.0564 4.2001 0.0001 33233.2143 92889.3015 33233.2143 92889.3015
Petroleum -2891.8342 14527.3042 -0.1991 0.8427 -31752.8596 25969.1912 -31752.8596 25969.1912
Total Revenues 1.2351 0.2355 5.2439 0.0000 0.7672 1.7030 0.7672 1.7030

Aux #3

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.3002
R Square 0.0901 VIF3 1.0990786648
Adjusted R Square -0.0008
Standard Error 23.5825
Observations 100
ANOVA
df SS MS F Significance F
Regression 9 4959.0997 551.0111 0.9908 0.4534
Residual 90 50052.1447 556.1349
Total 99 55011.2444
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 11.6352 8.5851 1.3553 0.1787 -5.4206 28.6911 -5.4206 28.6911
Earnings per Share 2.9366 2.0394 1.4399 0.1534 -1.1150 6.9882 -1.1150 6.9882
Grocery -3.3504 11.2704 -0.2973 0.7669 -25.7410 19.0401 -25.7410 19.0401
Electrical Power -6.3791 10.0895 -0.6322 0.5288 -26.4237 13.6656 -26.4237 13.6656
Chemical 10.1902 9.3741 1.0871 0.2799 -8.4331 28.8135 -8.4331 28.8135
Healthcare Products 5.3953 9.6933 0.5566 0.5792 -13.8622 24.6528 -13.8622 24.6528
Insurance -4.9294 10.6374 -0.4634 0.6442 -26.0624 16.2035 -26.0624 16.2035
Petroleum 0.4702 9.4245 0.0499 0.9603 -18.2532 19.1937 -18.2532 19.1937
Total Revenues -0.0001 0.0002 -0.4084 0.6839 -0.0004 0.0003 -0.0004 0.0003
Total Assets -0.0000 0.0001 -0.0472 0.9624 -0.0001 0.0001 -0.0001 0.0001

Aux #4

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.5063 VIF4 1.3447652545
R Square 0.2564
Adjusted R Square 0.1820
Standard Error 1.2051
Observations 100
ANOVA
df SS MS F Significance F
Regression 9 45.0617 5.0069 3.4477 0.0011
Residual 90 130.7025 1.4523
Total 99 175.7642
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 1.6488 0.4077 4.0445 0.0001 0.8389 2.4587 0.8389 2.4587
Grocery -0.4731 0.5740 -0.8241 0.4121 -1.6135 0.6674 -1.6135 0.6674
Electrical Power -0.2378 0.5161 -0.4608 0.6460 -1.2632 0.7875 -1.2632 0.7875
Chemical 0.4750 0.4796 0.9904 0.3246 -0.4778 1.4277 -0.4778 1.4277
Healthcare Products -0.3552 0.4948 -0.7180 0.4746 -1.3382 0.6277 -1.3382 0.6277
Insurance 0.9667 0.5346 1.8083 0.0739 -0.0954 2.0288 -0.0954 2.0288
Petroleum 0.6709 0.4764 1.4083 0.1625 -0.2755 1.6173 -0.2755 1.6173
Total Revenues 0.0000 0.0000 2.4963 0.0144 0.0000 0.0000 0.0000 0.0000
Total Assets -0.0000 0.0000 -0.4699 0.6395 -0.0000 0.0000 -0.0000 0.0000
Return on Equity 0.0077 0.0053 1.4399 0.1534 -0.0029 0.0182 -0.0029 0.0182

Aux Data

Earnings per Share Grocery Electrical Power Chemical Healthcare Products Insurance Petroleum Total Revenues Total Assets Return on Equity
2.08 0 0 0 0 1 0 7251 29454 17.1
2.08 1 0 0 0 0 0 14690 5219 21.4
3.56 0 0 0 0 1 0 20106 80918 20.1
0.08 0 0 0 0 0 1 8340 7935 0.2
2.19 0 0 0 0 1 0 3362 80620 7.1
1.01 1 0 0 0 0 0 19139 8536 12.2
2.76 0 0 0 0 0 1 36287 32489 16.7
1.14 0 0 1 0 0 0 3995 4116 6.2
3.8 0 0 0 0 0 1 14319 7777 9.5
5.41 0 0 0 0 0 1 19272 25322 21.8
0.89 0 0 0 1 0 0 1916 2773 6
1.06 0 0 0 1 0 0 6138 8707 11.5
3.14 0 0 0 1 0 0 16701 14977 44.4
1.18 0 0 0 0 0 0 1777 775 12.3
0.16 0 1 0 0 0 0 954 2299 2.4
4.95 0 0 0 0 0 1 41950 35473 18.6
4.88 0 0 0 0 1 0 14935 108199 13.7
1.59 0 1 0 0 0 0 4353 8858 13.3
1.7 0 0 0 0 0 0 27757 14191 18
2.31 0 0 0 0 0 0 6817 5592 9.2
2.15 0 1 0 0 0 0 7678 20193 7.9
7.7 0 0 1 0 0 0 20018 24040 23.6
1.2 0 1 0 0 0 0 1356 3585 13.9
2.08 0 0 1 0 0 0 46653 42942 21.3
3.63 0 0 1 0 0 0 4678 5778 16.3
1.73 0 1 0 0 0 0 9235 25101 12.3
0.33 0 0 1 0 0 0 3631 2586 6.1
1.03 0 1 0 0 0 0 9562 27001 4.2
2.86 0 0 0 0 1 0 9666 151438 12.3
0.71 0 0 0 0 0 1 1064 1067 53.6
3.37 0 0 0 0 0 1 137242 96064 19.4
3.57 0 1 0 0 0 0 6369 12449 12.2
1.3 0 0 0 0 0 0 6508 3338 33.7
2.39 0 0 1 0 0 0 966 613 228
1.18 1 0 0 0 0 0 4231 1522 7.9
1.66 1 0 0 0 0 0 10262 2995 6.9
1.19 0 0 1 0 0 0 1311 2270 5.5
1.57 0 1 0 0 0 0 179 326 8.3
1.4 1 0 0 0 0 0 3226 1227 9.9
3.18 0 0 1 0 0 0 1866 2411 47
1.66 0 1 0 0 0 0 6873 18415 8
3.47 0 0 0 0 1 0 2578 23131 14.5
2.41 0 0 0 1 0 0 22629 21453 26.7
3.34 0 0 0 0 1 0 660 3185 11.1
0.79 0 0 0 0 0 0 9189 4301 10.6
0.21 0 0 0 0 1 0 4899 77175 0.4
2.66 0 0 1 0 0 0 1674 1462 19
3.58 0 0 0 0 0 1 3010 1559 46.2
2.47 0 0 0 1 0 0 1868 2988 14.8
3.11 0 0 0 0 0 0 12685 9930 20.5
1.59 0 0 0 1 0 0 20857 5608 11
3.53 0 0 0 0 0 0 3144 2178 7.9
3.74 0 0 0 1 0 0 23637 25812 36.6
2.47 0 0 1 0 0 0 3048 4326 12.6
4.01 0 0 0 0 0 1 65906 43559 16.8
0.48 0 0 1 0 0 0 7514 10774 7.2
1.48 0 0 1 0 0 0 2388 2805 12.3
2.94 0 0 0 0 0 1 2138 2238 12.3
0.82 0 0 0 1 0 0 555 848 13.5
2.1 0 0 1 0 0 0 1434 1441 25
1.65 0 1 0 0 0 0 799 2339 10.1
1.53 0 1 0 0 0 0 2587 4937 14.1
3 0 0 1 0 0 0 2410 1946 17.4
4.15 0 0 0 0 1 0 1591 3884 16
0.6 0 0 0 1 0 0 3117 713 9.4
0.68 0 1 0 0 0 0 6278 13880 5.2
2.1 0 0 0 0 0 0 30546 23493 7.7
3.76 0 0 0 0 0 1 2654 4406 15.8
1.7 0 0 0 1 0 0 12504 15336 27.9
0.61 0 0 0 1 0 0 6710 10380 5.8
3.61 0 0 0 0 0 1 15424 13860 19.9
1.48 0 0 0 0 1 0 129 194 25.1
3.94 0 0 1 0 0 0 7379 6868 28.5
1.8 0 1 0 0 0 0 3049 9485 11.4
5.31 0 0 0 0 1 0 4190 7560 18.7
2.13 0 0 1 0 0 0 3999 3900 19.8
1.02 1 0 0 0 0 0 2300 885 12.5
1.95 0 0 0 1 0 0 6778 6507 51.2
2.99 0 0 0 0 0 0 41296 38700 20.3
1.28 0 0 0 1 0 0 980 985 20.5
2.7 0 0 0 0 0 1 10531 4667 18
1.8 0 0 0 0 1 0 2114 35637 14.7
4.87 0 0 0 0 0 1 46667 29600 20.9
1.75 0 0 0 0 0 0 7389 2610 26.3
2.39 0 0 0 0 1 0 2283 10967 17.5
1.37 0 0 0 0 0 1 13282 5975 10.9
2.54 0 0 0 0 1 0 37609 386555 14.9
1.94 0 0 0 0 0 1 10882 5595 9.5
4.53 0 0 1 0 0 0 6502 6964 28.8
1.21 0 0 0 1 0 0 1172 1726 7.5
2.65 0 0 0 0 0 1 6064 7530 28.9
2.59 0 0 0 0 1 0 4077 13200 15.2
1.58 0 0 0 0 0 1 15754 10565 12.6
2.03 0 0 0 0 0 1 5756 2493 9.6
1.04 0 0 0 1 0 0 8180 8031 30.7
1.87 1 0 0 0 0 0 1819 972 9.2
0.97 0 0 1 0 0 0 1083 1319 4.8
1.36 1 0 0 0 0 0 13219 2921 15.3
1.55 0 0 1 0 0 0 2187 2298 14
1.57 0 0 0 0 1 0 601 1252 7.8