# Question

An analyst believes that the only important determinant of banks' returns on assets (Y) is the ratio of loans to deposits (X). For a random sample of 20 banks, the sample regression line

y = 0.97 + 0.47x

was obtained with coefficient of determination 0.720.

a. Find the sample correlation between returns on assets and the ratio of loans to deposits.

b. Test against a two-sided alternative at the 5% significance level the null hypothesis of no linear association between the returns and the ratio.

y = 0.97 + 0.47x

was obtained with coefficient of determination 0.720.

a. Find the sample correlation between returns on assets and the ratio of loans to deposits.

b. Test against a two-sided alternative at the 5% significance level the null hypothesis of no linear association between the returns and the ratio.

## Answer to relevant Questions

Given the regression equation Y = -50 + 12X a. What is the change in Y when X changes by +3? b. What is the change in Y when X changes by -4? c. What is the predicted value of Y when X = 12? d. What is the predicted value of ...Stuart Wainwright, the vice president of purchasing for a large national retailer, has asked you to prepare an analysis of retail sales by state. He wants to know if either the percent of male unemployment or the per capita ...A prestigious national news service has gathered information on a number of nationally ranked private colleges; these data are contained in the data file Private Colleges. You have been asked to determine if the student ...A number of nutritionists have argued that fastfood restaurants have a negative effect on nutrition quality. In this exercise you are asked to determine if there is evidence to conclude that increasing the number of meals at ...The Center for Disease Control (CDC) is interested in knowing if there are state-level population characteristics that predict the occurrence of breast cancer death rates and the occurrence of lung cancer death rates. The ...Post your question

0