In the following regression, X= total assets ($ billions), Y = total revenue ($ billions), and n = 6


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, 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 = t \[^{2}\] for the slope. (f) In your own words, describe the fit of this regression.

R\[^{2}\] 0.519
Std. Error 6.977
N 64
ANOVA table
Source SS Df MS F p-value
Regression 3,260.0981 1 3,260.0981 66.97 1.90E-11
Residual 3,018.3339 62 48.6828
Total 6.278.4320 63
Regression output Confidence interval
Variables Coefficients Std. error T(df=33) p-value 95% lower 95% upper
Intercept 6.5763 1.9254 3.416 .0011 2.7275 10.4252
X1 0.0452 0.0055 8.183 1.90E-11 0.0342 0.0563
Price: $2.99
Solution: The solution consists of 2 pages
Solution Format: Word Document

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