A finance executive would like to determine if a relationship exists between the current earnings per share (EPS) of a bank and the following independent variables below. ROAA measures how effectively assets are utilized, and ROAE measures a firm's profitability. Complete parts a through e below.

x 1x1 - Total assets ($ billions)	x 2x2 - Previous period's return on average assets(ROAA)
x 3x3 - Previous period's EPS	x 4x4 - Previous period's return on average equity(ROAE)

Please answer part c only!

a) Construct a regression model using all four independent

variables.

ModifyingAbove y with caretyequals=left parenthesis nothing right parenthesis0.456plus+left parenthesis nothing right parenthesis0.204x 1x1plus+left parenthesis nothing right parenthesis1.111x 2x2plus+left parenthesis nothing right parenthesis0.234x 3x3plus+left parenthesis nothing right parenthesis0.020x 4x4

(Round to three decimal places as needed.)

b) Interpret the meaning of the regression coefficients. Select the correct choice below and, if necessary, fill in the answer boxes within your choice.

Each additional billion dollars of total assets

decreases

the current EPS by

0.204.

Each additional percentage point for the previous period's ROAA

increases

the current EPS by

1.111.

Each additional dollar for the previous period's EPS

increases

the current EPS by

0.234.

Each additional percentage point for the previous period's ROAE

decreases

the current EPS by

0.020.

c) Predict the average EPS for a bank that has

$1.81billion in total assets,

ROAAequals= 9.9%,

EPS(previous)equals=$1.22

and ROAEequals=179%.

what is your y hat?