help with a regression equation summary 1
Hi Caramarie,
I appreciated your help with calculus earlier, are you able to help me summarize a regression equation within the next 9 hours?
Here’s the question:
A study was conducted on the labour-hours costs of Federal Deposit Insurance Corporation (FDIC) audits of banks. Data were obtained on 91 such audits. Some of these were conducted by the FDIC alone and some jointly with state auditors. Auditors rated banks’ management as good, satisfactory, fair or unsatisfactory. The model estimated was:
log y = 2.41 + 0.3674 logx1 +0.2217 logx2 + 0.0803 logx3 -0.1755 x4 + 0.2799 x5 + 0.5634 x6 – 0.2572 x7 + e
R^2 = 0.766
Coefficient estimates associated with standard errors:
x1 = 0.0477
x2 = 0.0628
x3 = 0.0287
x4 = 0.2905
x5 = 0.1044
x6 = 0.1657
x7 = 0.0787
Where:
y = FDIC auditor labour-hours
x1 = total assets of bank
x2 = total number of offices in bank
x3 = ratio of classified loans to total loans for bank
x4 = “1” if management was good, “0” otherwise
x5 = 1 if management was “fair” 0 otherwise
x6 = 1 if management was “unsatisfactory” 0 otherwise
x7 = 1 if audit was conducted jointly with the state, 0 otherwise
Write a summary of these results.