Question

Use the following information for questions 1, 2, and 3 A regression analysis was conducted on data from 199 banks to explain the Return on Asset:s (ROA) using the Efficiency Ratio (ER) and Total Risked Based Capital (TRBC). All three variables were measured in percentages. This means that 1.58% was entered as 1.58; 10.2% was entered as 10.2. sion Stotistics Multiple R R Square Adjusted R Square Standard Error Observations 0.647 0.418 0.412 0.247 199 ANOVA MS ance F 0.50 8.58311E-24 8.60 4.302 Residual Total 196 198 1.96 0.061 20.57 ients Standard Error tStat P value .851 0.017 0.019 Lower 95% 95% Lower 95.0% Intercept Efficiency Ratio(%) Total Risk-Based Capital (%) 95.0 0.153 12.105 1.50686E-25 1.549225158 2.15228732 1549225158 2.1522873 0.002 -9.745 1.50665E-180020443726 0.013561993-0.020443726001356199 0.005 4.007 8.72748E-05 0.009833966 0.028894945 0.009833966 0.02889494 1. What percentage of the variation in ROA is explained by the regression on ER and TRBC? a. b. C. d. 64.796 41.8% 41.2% 24.7% 2. What is the value of the test statistic used to test the null hypothesis Vs. HA: At least one ?, 0? a. 4.302 b. -9.745 c. 70.50 d. 8.60 3, what is the predicted ROA for a bank with an ER equal to 60% and a TRBC of 13%? Round your answer to 2 decimal places. A ROA of 1.58% should be entered as 1.58. Do NOT include the % sign.

Answer 1