Profitability Analysis with FTC (Federal Trade Commission) Line of Business and Census Establishment Data: An Evaluation of Data Bases.
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF ENGINEERING
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This thesis addresses the question of how the recently released FTC Line of Business data can improve or extend the results of the statistical andor economic results obtained with the structure-profit model using Census data alone. A variation of the generalized F test with interaction terms was used to compare model formulations which differed only in the source of the data for one or more of the independent variables. The comparisons indicated there may be few differences between the data supplied in the FTC and Census data bases. However, comparisons of the coefficients between regression runs with Census data and regression runs with some FTC data was very seldom significant and often times possessed the wrong sign. The use of an FTC Price-Cost-Margin caused a similar problem with the Capital-Output ratio computed from all Census data. The results of the aforementioned F test comparisons suggested that pooling of the data was possible. Doing so resulted in very robust coefficients for the regressions using a Census derived Price-Cost-Margin but not for those using an FTC derived Price-Cost-Margin. The fit of the model to the data in these regressions as expressed in terms of the adjusted R square was as high as 0.43 when using a Cost Advantage efficiency variable in the model. Author
- Economics and Cost Analysis