Interpret the each coefficient except for the intercept

Assignment Help Business Economics

Reference no: EM13215054

The Dodge City Bank is planning its loans for the next several years, and is using a model of loan demand developed from past experience. Fred Smith is responsible for developing the mortgage loan component of total loan demand. Fred estimates the following equation using 14 years of data:

Q = 50 - 0.5P + 0.6Y + 0 .2H,
R2 = .844 (17) (0.13) (0.08) (.06) Number of observation (N) = 14

Here, Q denotes mortgage loan demand (in $ millions), P denotes the prime interest rate (%), Y is per capita income ($ thousands), and H is an index of average city housing prices ($ thousands). The standard error of a coefficient is shown in each parenthesis.

a. Interpret the each coefficient except for the intercept.

b. Test the overall statistical significance of the regression equation at 95 % confidence. And interpret your result.

c. Test the statistical significance of each individual right-hand variable at 95 % confidence. And interpret your results.

Reference no: EM13215054

Questions Cloud

Use some economic concepts in your post : Who should do the job, Lebron or Pat? Explain. Be sure to use some economic concepts in your post.

Determine what is the cost of the land : These expenditures were incurred by Dunston Company in purchasing land: cash price $60,000; accrued taxes $5,000; attorney's fees $2,100; real estate broker's commission $3,300; and clearing and grading $3,500. What is the cost of the land

What is the expected return on pepsico stock : Suppose the S&P index is expected to fall by 1 percent over the next month. What is the expected return on PepsiCo's stock?

Explain net income and cash flow from operations : Discuss the relationship between net income and cash flow from operations and between cash flows from operation investing, and financing activities for the firm over the three year period.

Interpret the each coefficient except for the intercept : The Dodge City Bank is planning its loans for the next several years, and is using a model of loan demand developed from past experience. Fred Smith is responsible for developing the mortgage loan component of total loan demand.

Antisocial and delinquent peers : How do peers affect delinquency? Do delinquents seek out antisocial and delinquent peers as friends or does having delinquent peers cause an individual to become delinquent?

Compute the net cash flow from operating activities : Yokum Company had the following transactions for 20X1: Collections on accounts receivable $236,250 Payments on inventory ($168,750) Payments for wages and salaries ($78,750) Payments of dividends ($11,250)Depreciation expense ($22,500) Income taxes p..

The product life cycle represents : The product life cycle represents the stages products go through from beginning to end. What are some ways marketers could extend a product's lifespan, by promoting a different use or purpose for the product?

Explain cash management system : Average daily remittances are $5 million, and "extended disbursement float" adds 3 days to the disbursement schedule, how much should the firm be willing to pay for a cash management system if the firm earns 10% on excess funds

User Account

All Pages