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Regression analysis

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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.

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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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