Question

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 twotailed
test for zero slope, and use Appendix D to find the critical value at á = .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