Question:

In the following regression, X = total assets ($ billions), Y = total revenue ($ billions), and n = 64 large banks. (a) Write the fitted regression equation. (b) State the degrees of freedom for a two-tailed test for zero slope, and use Appendix D to find the critical value at α = .05. (c) What is your conclusion about the slope? (d) Interpret the 95 percent confidence limits for the slope. (e) Verify that F = for the slope. (f) In your own words, describe the fit of this regression.

(a) y = 6.573 + 0.0452x

(b) degrees of freedom = 62; t critical = 2.000

(c) 0.0342 and 0.0563 - Slope is greater than zero

(d) Interval indicates slope is not significantly greater than zero

(e) F = t^2 = 66.97 = 8.184