Sample Correlation, Intercepts, and the Coefficient of Determination
Not what you're looking for?
An analyst believe that the only important determinant of banks' return on assets (Y) is the ratio of loans to deposits (X). For a random sample of banks the sample regression line:
Yhat = 0.97 + 0.57X
1.72 2.04 T statistics
was obtained with the coefficient of determination 0.720.
a. Find the sample correlation between returns on assets and the ratio of loans to deposits.
b. Interpret the intercept and slope of the estimated regression line.
c. Interpret the coefficient of determination.
d. Test the null hypothesis that the slope of the population regression line is 0 against the alternative that the true slope is not equal to zero, and interpret your results.
Purchase this Solution
Solution Summary
This response provides guidelines to calculate a sample correlation, to interpret the intercept of a regression line, and to test a null hypothesis.
Solution Preview
a. Find the sample correlation between returns on assets and the ratio of loans to deposits.
r = 0.848
Please refer to the attachment for a full solution.
b. Interpret the intercept and slope of the estimated regression line. ...
Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.