Calculate and interpret the correlation matrix

Assignment Help Other Subject

Reference no: EM133662937

Quantitative Research for Business

Assignment Title: Predicting Audit Fees: A Multivariate Analysis

Objective: The objective of this assignment is to utilize various analysis techniques to predict audit fees based on various financial and non-financial factors such as market capitalization, industry, auditor, balance sheet assets, beta, and sales.

Dataset: Use a dataset containing information on audit fees, market capitalization, industry classification, auditor details, balance sheet assets, beta values, and sales for a sample of companies. See details of variables in the appendix.

General Requirements:
The following list of deadlines and requirements should be adhered to. Failure to do so will result in a lower grade on the project.

Prepare a comprehensive report that includes data summaries, analysis results, visualizations, and interpretations. Present your findings and conclusions in a well-organized manner. Include any code used for analysis in an appendix.

The paper should
• be typed and double-spaced;
• flow as a well-documented coherent paper;
• cite all sources;
• have correct formats for the bibliography, footnotes, and references;
• have on the first page of the paper, the title of the paper, the author's names, and
• have an executive summary.

Quality is the most appropriate determinant of the grade awarded, but it is suggested that approximately 2,000 words be a suitable length.

Tasks:
1. Data Exploration:
o Provide a summary of the dataset, including descriptive statistics, missing values, and outliers.
o Visualize the relationships between audit fees and each predictor variable using scatter plots.
2. Correlation Analysis:
o Calculate and interpret the correlation matrix between audit fees and predictor variables.
o Identify the variables with the highest and lowest correlations with audit fees.
3. Regression Analysis:
o Perform a multiple linear regression analysis with audit fees as the dependent variable and all predictor variables as independent variables.
o Evaluate the overall fit of the regression model using appropriate statistics (R-squared, F-statistic).
o Interpret the regression model coefficients, paying particular attention to the significance levels.
4. Factor Analysis:
o Conduct a factor analysis to identify latent factors that explain the shared variance among the predictor variables.
o Examine the factor loadings and determine the interpretation of each factor.
o Assess whether the identified factors provide insights into the underlying structure of the data and the potential for dimensionality reduction.
o Compare the predicted and actual audit fees to assess the model's accuracy.
5. Other Analysis:
o Robust
o Sensitivity
6. Discussion and Conclusion:
o Summarize the key findings from the regression, correlation, and factor analyses.
o Discuss the variables that significantly influence audit fees and their respective magnitudes.
o Reflect on the limitations of the analysis and potential areas for further research.

Reference no: EM133662937

Questions Cloud

Discuss and demo what you have completed for your assignment : Discuss and demo what you have completed for your assignment and project to your tutor. Explain clearly what you are developing and any challenges you have face

Driven by internal or external forces : The assigned reading and supporting materials inform us that organizational change, whether driven by internal or external forces,

How long will the protection last : Give an example of a patent and how the patent rights affected the success of the product or process, or the design. How long will the protection last?

Care resulting from the employees work-related injury : The spouse of an employee sues the employer for loss of companionship and care resulting from the employee's work-related injury.

Calculate and interpret the correlation matrix : MBS659 Quantitative Research for Business, Murdoch University - Provide a summary of the dataset, including descriptive statistics, missing values, and outliers

Stage of career stage model of socialization occur : When does the accommodation stage of the career stage model of socialization occur?

Which services do you feel are needed or wanted in community : Scan the local environment, which services do you feel are needed or a wanted in your local community? Is there an opportunity for funding?

Stage of employee life cycle : Write recommendations for how an organization can improve and/or impact the employee experience positively at each stage of the Employee Life Cycle.

How are you entangled with and connected to these elements : How are you entangled with and connected to these elements in place? How are these elements affecting you? How are you engaging and thinking with place

User Account

All Pages