You can chose Problem 1 or Problem 2 for your last assignment which is due
via e-mail by 5/21/99 (Friday). 

PROBLEM 1

1. Use Stata and Table 10.5 in your text book to regress profits as
measured by ROE on size, size squared, & size cubed.  Run one regression
using size is measured by stockholders' equity.  Run a second regression
where size is measured by total assets. 
Run a third regression where size is measured by sales.  For example your
first regression will use ROE for the dependent variable, and it will have
3 independent variables: (1) stockholders' equity, (2) stockholders'
equity squared, and (3) stockholders ' equity cubed. 

2. Copy the results that you get when you run each regression into word. 
(Highlight the Stata output and use ctl-c to copy.  Go to word and use
ctl-v to paste.  Highlight the output that you pasted into word and change
the font to courier new, size 9 in order to get the correct formatting.)

3. Discuss your findings:  (1) Are the independent variables significant? 
(2) What does the R square tell you?  (3) Is there a non-linear
relationship between ROE and size? 

PROBLEM TWO

1. Use Excel to answer problem 15.5 in your text.  Label the worksheet
P15.5

2. Use another worksheet in the same Excel spreadsheet to answer problem
15.6 in your text.  Label the worksheet P15.6.