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BrainMass Expert's Approach to: Regression

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 = 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

Solution Preview

(a) Write the fitted regression equation.
Y = 6.5763 + 0.0452

(b) State the degrees of freedom for a twotailed test for zero slope, and use Appendix D to find the critical value at α = .05.
The degrees of freedom for a two- tailed test for zero slope is (1, ...

Solution Summary

This solution analyzes a regression.

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