RESEARCH FRAMEWORK HYPOTHESIS FRAMEWORK

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F. RESEARCH FRAMEWORK

FIGURES 2.1 RESEARCH FRAMEWORK Effect of Current Ratio, Activity Ratio, Debt Ratio, and Average Inflation on Profitability Ratio in the Real Estate Company in Indonesia Stock Exchange 2010-2013 Independent Variables 1. Current Ratio 2. Activity Ratio 3. Debt Ratio 4. Inflation Dependent Variables Profitability Ratio Classic Assumption Test Normality Multicollinearity Heterocedasticity Autocorrelation Multiple Linear Regressions Hypothesis Test Partial Test t-Test Simoultan Test F-test Analysis, Interpretation, Limits, and Recommendation Coefficient of Determination 24

G. HYPOTHESIS

Sugiyono 2008: 96 stated hypothesis is temporary answer to the formulation of research problems, in which the formulation of the problem has been expressed in the form of a question sentence. Said to be temporary because new answers given are based on relevant theory, not based on empirical facts. Furthermore, the hypothesis in this study is: H1: Current ratio has a significant impact on profitability ratio Real Estate Company in Indonesia Stock Exchange. H2: activity ratio has a significant impact on profitability ratio Real Estate Company in Indonesia Stock Exchange H3: debt ratio has a significant impact on profitability ratio Real Estate Company in Indonesia Stock Exchange H4: inflation has a significant impact on profitability ratio Real Estate Company in Indonesia Stock Exchange H5: liquidity ratio, solvency ratio, activity ratio, and inflation simultaneously has a significant impact on profitability ratio Real Estate Company in Indonesia Stock Exchange 25 CHAPTER III RESEARCH METHODOLOGY

A. FRAMEWORK

This study will begin from early research on the company property in Indonesia Stock Exchange. The basis of calculation in this study will be used from the literature study that has been engraved in Chapter 2. After getting the data that is needed, then the next will be analyzed the extent of the influence of the current ratio, activity ratio, debt ratio, and inflation to profitability ratio that later can be a conclusion and suggestions for Real Estate Company in Indonesia Stock Exchange.

B. RESEARCH DESIGN