A finance executive would like to determine if a relationship exists between current earnings per share (EPS) of a bank and the following independent variables
1. Total assets (Sbillions)
2. Previous period's EPS
3. Previous period's return on average assets (ROA)
4. Previous period's return on average equity (ROE)
ROA measures how effectively assets are utilized, and ROE measures a bank's profitability. Using the following Excel output, answer the following questions (Round to the nearest 3 decimal points)
SUMMARY
OUTPUT
Regression Statistics
Multiple R 0.901231
R Square
Adjusted R
Square
Standard Error 1.104512
Observations
ANOVA
1. Number of observations:
2. Degrees of freedom Regression:
3. Degrees of freedom Residual:
4. Calculate SSR:
5. Calculate MSR:
6. Calculate MSE:
7. Calculate F-test:
8. Calculate F critical value using alpha =0.05:
9. Calculate p-values for the F-test "Significance F":
10. Calculate R-Square:
11. Calculate Adjusted R-Square: