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# Statistics - Regression Output - Interpretation

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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 &#945; = .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.

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#### Solution Preview

The detailed steps are given in the attached solution file. Following are the brief steps.

The regression equation is Y = 6.5763 + 0.0452 X1

df = ...

#### Solution Summary

Solution to the posted problem is given with step by step explanation so that the students could use these to solve and answer other similar problems. The computer output of Regression is interpreted in such a simple way that the students feel it easy to remember and use for other similar problems.

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