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A finance executive would like to determine if a relationship exists between the current earnings per share (EPS) of a bank and the total assets
A finance executive would like to determine if a relationship exists between the current earnings per share (EPS) of a bank and the total assets ($ billions), previous period's EPS, previous period's return on average assets (ROAA), and the previous period's return on average equity (ROAE). ROAA measures how effectively assets are utilized, and ROAE measures a firm's profitability. Complete parts a through d below. . . . O C. Ho: P1 # B2 # By # B4 (Relationship exists between the variables) H1: By = B2= B3=P4 (No relationship between the variables) O D. Ho: At least one ; #0 (Relationship exists between the variables) H1: By = P2= B3= B4= 0 (No relationship between the variables) Identify the value of the test statistic. F =(Round to one decimal place as needed.) Calculate the p-value. The p-value is. (Round to three decimal places as needed.) What is the conclusion for this test? O A. Since the p-value is less than a, reject the null hypothesis. The overall regression model is significant at the a = 0.05 significance level. O B. Since the p-value is greater than a, do not reject the null hypothesis. The overall regression model is significant at the o = 0.05 significance level. O C. Since the p-value is greater than a, do not reject the null hypothesis. The overall regression model is not significant at the a = 0.05 significance level. O D. Since the p-value is less than a, reject the null hypothesis. The overall regression model is not significant at the a = 0.05 significance level. d. Calculate the adjusted multiple coefficient of determination. A =(Round to three decimal places as needed.)A finance executive would like to determine if a relationship exists between the current earnings per share (EPS) of a bank and the total assets ($ billions), previous period's EPS, previous period's return on average assets (ROAA), and the previous period's return on average equity (ROAE). ROAA measures how effectively assets are utilized, and ROAE measures a firm's profitability. Complete parts a through d below. a. Construct a regression model using all the independent variables. Let y be the current EPS, x, be the total assets ($ billions), X2 be the previous EPS, X3 be the previous ROAA, and x4 be the previous ROAE. y = (0) +() *1 + () *2 + () x3 + () x4 (Round to three decimal places as needed.) b. Calculate the multiple coefficient of determination. R2 = (Round to three decimal places as needed.) c. Test the significance of the overall regression model using a = 0.05. What are the null and alternative hypotheses for this test? O A. Ho: By = P2= P3= 4= 0 (No relationship between the variables) Hy: At least one ; #0 (Relationship exists between the variables) O B. Ho: By = P2 = B3= P4 (No relationship between the variables) Hy: By # B2 # P3 # B4 (Relationship exists between the variables) O C. Ho: By # B2 # 3 # B4 (Relationship exists between the variables) H1: B1 = B2= B3= B4 (No relationship between the variables) O D. Ho: At least one ; #0 (Relationship exists between the variables) H1: By = P2= P3= B4= 0 (No relationship between the variables) Identify the value of the test statistic.
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