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Regression analysis

In the following regression, X = total assets ($ billions), Y = total revenue ($ billions), and n = 64 large banks.
Use 95% confidence level, α = .05

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.720
R Square 0.519
Standard Error 6.977
Observations 64

ANOVA table
df SS MS F Significance F
Regression 1 3,260.0981 3260.0981 66.97 1.90E-11
Residual 62 3,018.3339 48.6828
Total 63 6,278.4320
Confidence interval

Regression output
Coefficients Standard Error t Stat P-value Lower 95% Upper 95%
Intercept 6.5763 1.9254 3.416 0.0011 2.7275 10.452
X1 0.0452 0.0055 8.183 1.90E-11 0.0342 0.0563

A. Write the fitted regression equation.

B. State the degrees of freedom for a two tailed test for zero slope.

C. What is your conclusion about the slope?
(Explain if Ho: ρ = 0 or H1: ρ ≠ 0.)

D. Describe the fit of this regression - use R Square to explain the variation.

Solution Summary

The solution provides step by step method for the calculation of test statistic for regression coefficient. Formula for the calculation and Interpretations of the results are also included.

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