Question: 50 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 Excel 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 = t2 for the slope.

(f) In your own words, describe the fit of this regression.

R2 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 = 62) 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