Question: From the regression output answer the following questions: Dependent Variable: ROA Method: Panel Least Squares Date: 04/15/21 Time: 14:02 Sample: 2014 2018 Periods included: 5
- From the regression output answer the following questions:
| Dependent Variable: ROA |
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| Method: Panel Least Squares |
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| Date: 04/15/21 Time: 14:02 |
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| Sample: 2014 2018 |
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| Periods included: 5 |
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| Cross-sections included: 5 |
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| Total panel (balanced) observations: 25 |
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| Variable | Coefficient | Std. Error | t-Statistic | Prob. |
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| C | -0.045631 | 0.086373 | -0.528299 | 0.6034 |
| LIQUIDITY | 0.021287 | 0.011007 | 1.933996 | 0.0681 |
| CAPITAL_ADEQUACY | -0.031650 | 0.004295 | -7.369850 | 0.0000 |
| INFLATION | -0.199705 | 0.777009 | -0.257018 | 0.7999 |
| FINANCIAL_RISK | 0.037749 | 0.073517 | 0.513463 | 0.6135 |
| ASSET_MANAGEMENT | 0.743775 | 0.005126 | 145.1114 | 0.0000 |
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| R-squared | 0.999785 | Mean dependent var | 0.362852 | |
| Adjusted R-squared | 0.999729 | S.D. dependent var | 1.284541 | |
| S.E. of regression | 0.021160 | Akaike info criterion | -4.667852 | |
| Sum squared resid | 0.008507 | Schwarz criterion | -4.375322 | |
| Log likelihood | 64.34815 | Hannan-Quinn criter. | -4.586717 | |
| F-statistic | 17685.43 | Durbin-Watson stat | 1.600212 | |
| Prob(F-statistic) | 0.000000 |
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- From the regression output table identify independent and dependent variable. (3 marks)
- Write down the regression equation. (2 marks)
- Explain R-squared value. (3 marks)
- If alpha value is 0.05 which variables will be accepted? (3 marks)
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