For Exercises 11.1 and 11.2, see page 533; for 11.3 and 11.4, see page 535; for 11.5 and 11.6, see page 537; for 11.7 and 11.8, see page 538; for 11.9 and 11.10, see page 541; for 11.11 to 11.14, see pages 543–544; and for 11.15 and 11.16, see page 544.
11.16 Compare the variability.
CASE 11.1 Figure 11.2 (page 536) gives the standard deviation of the log profits of the BBC Global 30 companies. What is this value? The regression standard error from Figure 11.6 also measures the variability of log profits, this time after taking into account the effect of assets and sales. Explain briefly why we expect to be smaller than . One way to describe how well multiple regression explains the response variable is to compare with .