The director of savings and loan of a bank wanted to examine the effect of net

Annual revenue per deposit dollar ( REV) and number of savings and loan offices for
that year (NOF) on the annual profit margin (AP). He collected the required data for 25
years and ran an SPSS program. The outputs were as follows:

Table Labeled Coefficients

Model Unstandardized Coefficients t Sig
B St Error
Constant 1.5645 0.0794 19.7050 1.9173

REV 0.2372 0.0557 4.2693 0.0003

NOF -0.0002 3.2049E-05 -7.7719 0.0000
Model Summary
Model R R Square Adjusted R Std. Error of the Estimates
Square
I 0.930 0.8653 0.8531 0.0533
2
ANOVA
Sum of df Mean F Sig
Model Squares Square
Regressio 0.4015 2 0.2008 70.6806 0.0000
n 0.0625 22 0.0028
Residual 0.4640 24
Total

Required:
i. Develop a multiple regression equation.
ii. What do the constant and the coefficients of the equation indicate?
iii. Find the annual profit margin (AP) if the net annual revenue (REV) and number of
savings and loan offices (NOF) are 3.51 and 6300 respectively.
iv. How much % of variation in the annual profit margin is explained by the fitted
regression model?
v. Is the estimated regression model statistically significant? Justify.
4.