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# Suppose that a lending rate influences profitability of commercial banks in Uganda. Use the regression below to answer the questions that follow: Profitability -44....

## Question

###### Suppose that a lending rate influences profitability of commercial banks in Uganda. Use the regression below to answer the questions that follow: Profitability -44.73 + 0.7Lendingrate- R square = 0.81 SE(Bo) = 0.97 SE(8;) = 0.58, SE denotes standard error State the hypotheses (4mks) Conduct the t-test (4mks) Test whether not the estimated coefficient of ~Lending Rate" is statistically significant at 5% significance level (the critical value for the t- test at 5% significance level is 1.

Suppose that a lending rate influences profitability of commercial banks in Uganda. Use the regression below to answer the questions that follow: Profitability -44.73 + 0.7Lendingrate- R square = 0.81 SE(Bo) = 0.97 SE(8;) = 0.58, SE denotes standard error State the hypotheses (4mks) Conduct the t-test (4mks) Test whether not the estimated coefficient of ~Lending Rate" is statistically significant at 5% significance level (the critical value for the t- test at 5% significance level is 1.96) (4mks) Interpret the results (2mks) What does "R-squared = 0.81" mean? (2mks) lending rate is 18, what is the estimated profitability (Profitability is measured in USD)? (2mks)

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