Question

In Problem 13.4 on page 469, you used efficiency ratio and total risk based capital to predict ROA at a community bank (stored in CommunityBanks). Using the results from that problem,
a. determine whether there is a significant relationship between ROA and the two independent variables (used efficiency ratio and total risk based capital) at the 0.05 level of significance.
b. interpret the meaning of the p value.
c. compute the coefficient of multiple determination, r2, and interpret its meaning.
d. compute the adjusted r2.


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  • CreatedJuly 16, 2015
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