# is it possible for all variables results in no significant value?

#### tonynk9

##### New Member
i need help on my multiple linear regression statistics assignment on conclusion and recommendation part... my problem is all the independent variables has no significant differences.... i don't know how to write a conclusions and recommendations part of the assignment...i did consult my lecturer yesterday but he cant talk much as hes was on his way to a meeting ... all he said is that based on my result it is possible to such result for the independent variables ... and he also told me it is because the model is weak based on the R square and adjusted R square value.... all i learn in class is usually there is at least one independent variables that is significant differeence but now i got this results where all the independent variables area all not significant and i don't know how to interpret it to write conclusion and recommendations... can someone give me some ideas what to write for the conclusion and recommendations part?

the assignment is about being a consulting firm for an investment holding company. They are thinking of diversifying into growth stocks. Thus, they have appointed your group to investigate the key factors which are significant in driving the performance of companies. In the report, your group is expected to present a summary of your analysis including key statistical results, conclusions and recommendations to those investors who want to make an investment in a company.

OR
here is the part of the results that i got ;

The Independents variable are ;
• Net Sales or Net Revenue
• Operating Expenses
• Net Cash from Operating Activities
• Total Assets
• Total of Common Shareholders’ Equity
• Dividends Paid

DEPENDENT VARIABLES = ROA (return on assets)

i) Coefficient of Determination (R2) = 0.3715, 37.15% of total variation in the ROA of the companies can be explained by the variation of the six independent variables. There is about 62.85% of unexplained variation. The model is considered to be a weak model.

ii) Adjusted coefficient of Determination (Adj. R2) = -0.1672, 16.72% of total variation in the ROA of the companies can be explained by the variation of the six independent variables after taking into account the sample size and number of independent variables. There is about 83.28% of unexplained variation. The model is considered to be a weak model.

ROA(Return on Assets) of the companies = 0.111 (Intercept ) -3.963(Net Sales) + 1.405 (Operating Expenses) +1.357 (Cash from Operating Activities) +2.008 (Total Assets) -2.365 (Total of Common Shareholders’ Equity) -1.227 ( Dividends Paid)

Hypothesis Testing
H0= There is no significant relationship between X1 and ROA Y1
H1 = There is significant relationship between X1 and ROA Y1
X1 = Variable 1-6

Test Statistic

Net Sales = 0.671 > = 0.05 not significant: accept H0
Operating Expenses = 0.959 > = 0.05 not significant: accept H0
Cash from Operating Activities = 0.648 > = 0.05 not significant: accept H0
Total Assets = 0.526 > = 0.05 not significant: accept H0
Total of Common Shareholders’ Equity = 0.475 > = 0.05 not significant: acceptt H0
Dividends Paid = 0.949 > = 0.05 not significant: accept H0

None of the six independent variables have significant relationship with ROA

..............
the conclusions and recommendations should be about statistics theory in general and what are the issues that i encounter and i also should write recommendations on how to improve the analysis ....

and for the presentations what i have to do is to Assume that i have to present the findings to my employer. i need to talk on the background of the problem and any other meaningful observations or issues that deserved to be pointed out...... hope someone can give me some ideas on what to talk about

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