You are asked to construct a model to predict the Profit of Branch of a Bank. In
ID: 3319985 • Letter: Y
Question
You are asked to construct a model to predict the Profit of Branch of a Bank. In which of the following models all independent variables are significant at =0.05?
A.
Branch Profit = -279355 + 99.031*Total Sales/Year + 24.027*Tatal Sqft + 700.26*FTE Managers
B. Branch Profit = -278183 + 99.047*Total Sales/Year + 24.128*Total Sqft
C.
Total Sqft = -279355 + 99.031*Total Sales/Year + 0.3442 Branch Profit
D.
Total Sqft = Branch Profit + Total Sales/Year + FTE Managers
Total Sales p/year- Total SQUFT- FTE Managers- Branch Profits
10591 2474 2 821298
9069 4262 3 718488
7511 7608 3 630752
1541 3248 2 -40582
7569 5095 2 606998
6014 6455 2 474231
10506 3628 3 861916
4588 2818 1.5 246162
6058 2481 2 386684
3073 7027 3 187208
12021 4052 2.5 1031091
7541 1697 2 504632
3090 3023 2.5 100223
7594 3483 3 561795
10587 5646 2.5 901631
1529 5813 3 29199
6053 1821 2 346304
7578 2872 2.5 532738
A.
Branch Profit = -279355 + 99.031*Total Sales/Year + 24.027*Tatal Sqft + 700.26*FTE Managers
B. Branch Profit = -278183 + 99.047*Total Sales/Year + 24.128*Total Sqft
C.
Total Sqft = -279355 + 99.031*Total Sales/Year + 0.3442 Branch Profit
D.
Total Sqft = Branch Profit + Total Sales/Year + FTE Managers
Explanation / Answer
For regression equation A, the parameter estimates table is:
So we can see that FTE managers is insignificant variable.
For regression equation B, the parameter estimates table is:
Parameter estimates:
So this is the equation in which all the variables are significant.
Option B is correct.
Parameter Estimate Std. Err. Alternative DF T-Stat P-value Intercept -279354.87 15620.283 0 14 -17.884111 <0.0001 Total sales/ year 99.031027 0.96147605 0 14 102.99895 <0.0001 Total SQFT 24.027674 1.9409393 0 14 12.379405 <0.0001 FTE Managers 700.25959 7062.8423 0 14 0.099146995 0.9224Related Questions
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