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Question 5 The following Stata output refers to a regression for the determinants of the return on assets for a sample of 100 banks in
Question 5 The following Stata output refers to a regression for the determinants of the return on assets for a sample of 100 banks in a particular year. The variable definitions are as follows roa = percentage return on assets lasset- natural logarithm of asset value in list- 1 if the bank is stock market-listed, 0 otherwise . regress roa lasset list 100 97)7.85 = 0?0007 - 0.1394 Adj R-squared 0.1216 018 Source I dif MS Number of obs Model .005088159 2.00254408 Residual .031423584 97 .000323954 Prob F R-scruared Total 036511744 99 .000368805 Root MSE Coef. Std. Err P>It [95% Conf. Interval] lasset .0116509 .0034342 0036903 cons 0031819 0072979 3.39 0.001 2.08 0.040 0.44 .664 004835 .0003613 -.0113023 0184668 .01501 .0176662 list I .0076856 .0 (60%) Interpret the following results from the Stata output i) Coefficients on lasset and list, and their t-statistics and p-values. (10%) ii) R-squared (10%) iii) The F-statistic(10%) iv) The Adj R-squared (10%) v) Why did we use as a variable 'asset' and not just 'asset'? (10%) II. What is the expected return on assets for a listed bank with an asset value of 30 billion? (50%)
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