Forecast net cash flow

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Suppose that you have estimated a regression model that specifies ent cash flow as the dependent variable and sales as the independent variable. The output follows.

Regression Statistics:

Multiple R 0.279075347
R square 0.077883049
Adjusted R Square 0.044950301
Standard Error 25359.93796

Intercept:

Coefficients 184943.5835
standard error: 13024.64609
T-STAT: 14.19950931
p-Value: 2.55063E-14

Sales:

Coefficients 0.062008718
Standard error: 0.040322297
T-STAT:1.537827016
p-Value: 0.135316139

Use the key regression statistics discussed in the chapter to determine whether it is appropriate to use this regression model to forecast net cash flow.

Reference no: EM133057419

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