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This page includes a few screen shots of the actual answers. I’ve included enough information to let you know if you have the correct answers, but not enough information to just type in the answers. For example, the last image should include the full regression results. But my screen shot only includes the results for the intercept. There are a total of 10 variables in the regression ( the intercept, plus 9 covariates).

Main_Data sheet.

I’ve copied the regression results into column AJ through AN (just to the right of this screen shot). This way I could reference it directly when calculating the Predicted Effective Tax Rate (Pred ETR column AF). This screen shot is of the Main_data worksheet which has all the observations (just over 7,000); however, I’ve hidden most of the cells. Only a couple dozen are shown, please compare your calculated solutions to these numbers. Note, many observations will not match to the “addt_vars” worksheet (note that id_num=4, and 11 through 17 have been sorted to the bottom). Observations that failed to match with the “addt_vars” worksheet should be sorted to the bottom.

Answer – Step to Complete Sheet

Here is a screen shot from the pivot table from step #4. This is only the first row.

Step 5a)

This screen shot is of the regression results. There should be 9 variables plus the intercept included in the regression. This screenshot only includes the intercept. As a reminder, you should only use the variables that are statisticaly significant (p-value < than .05) to predict ETR.

Step 6

This step is at the bottom and easily forgotten. So don’t forget it. It’s a simple conditional formatting of the Unexpected ETR column.