An analyst believes that the only important determinant of banks' returns on assets (Y) is the ratio
Question:
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.
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Related Book For
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne
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