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Dhaka Bank Limited is a private-owned


commercial bank in Bangladesh.
It has Authorized Capital of Tk. 1,000 million
and Paid-up Capital of Tk. 100 million.
It has 54 Branches, 4 SME Service Centers,
5 CMS Units & 2 offshore Banking Units
It offers the full range of real-time online
banking services through its all Branches,
ATMs and Internet Banking Channels.

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We used

Independent
Variable

Dependent
Variable

Deposit

Total Asset

Investment
Fixed Asset

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Mean

Std.Deviation

Variance

Total Asset

68816.40

16733.06

2.80000000

Investment

55186.40

10262.46

105300000

Fixed Asset

7138.40

1456.61

2121716.30

Deposit

459.20

300.63

90380.20

MULTIPLE REGRATION
EQUATION

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Formula of Multiple Regression Equation:

=a+bx+bx+bx
Here,
a= constant
X=Deposit
X=Investment
X=Fixed asset

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Predictor

Coef

SE coef

Constant

-14257.245

3135.83

4.578

Deposit

1.284

.176

7.282

Investment

1.286

.909

1.415

Fixed Assets

6.817

2.652

2.570

= -14357.25+1.28x1+1.29x2+6.82x3
Total Asset=
-14357.25+1.28Deposit+1.29Investment+6.82Fixe
d Asset
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It is symbolized by a capital R
squared.
It can range from 0 to 1
It cannot assume negative values.
It is easy to interpret

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R =
=1
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Radj = 1= .99
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Here R is 1and Adjusted R is .99,


which is less than R
R is 1 so it means association between
dependent and independent variables
are strong
Only 1% of the variation if the
estimation can not be explained
through the adjustment of degrees of
freedom
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m

Global Test: ANOVA


We can test the ability of the independent variables x 1 ,x2,
x3xk to explain the behavior of the dependent variable
Y.
Basically, it investigates whether it is a possible all the
independent variables have zero regression equation.

ANOVA Test
Step 1 : State the null and alternate hypothesis:
The null hypothesis is:
The independent variables have less significant
effect on dependent variable
Ho: 1=2=3=0

The alternative hypothesis is:


The independent variables have significant effect on
dependent variable.
H1: 1 2 3 0
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Continued
Step 2: Select the level of significance:
We will use .05 significance level

Step 3: Determine the test statistics:


The test statistics follows the F distribution
F=

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Step 4: Formulate the decision rule:


The decision rule is reject Ho >216
The critical value of F is found in Appendix B.4.It is 216.
The degrees of freedom for numerator is 3;
The degrees of freedom for denominator is 1, found by
n-(k+1); 5-(3+1).

Step 5: Perform calculations and make a decision:


The value of F is :

F=
=
=968.70
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ANOVAb

Model
1

Sum of Squares
Regression
Residual

df

Mean Square

1.120E9

3.732E8

385257.551

385257.551

1.120E9

Total

F
968.699

Sig.
.024a

Particulars

Calculated
Value

Null
Hypothesis

Comment

F test

968.70 > 216

Rejected

Independent
variables have
significant effect
on dependent
variable

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Independent
Variables

Total Asset

Deposit
Investment
Fixed Asset

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year

Total asset

Deposit

Investment Fixed
asset

2006

47594.00

41554.00

5378.00

217.00

2007

57443.00

48731.00

5972.00

291.00

2008

71137.00

56986.00

7239.00

387.00

2009

77767.00

60918.00

8660.00

424.00

2010

90141.00

67743.00

8443.00

977.00

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Model

Unstandardized
coefficients
B

(Constan
t)

Std.Erro
r

Standardiz
ed
coefficients

sig

4.578

.137

Beta

3135.83
14357.2
2
45
.788
Deposit
.176
1.284
.112
Investme
.909
nt
1.286
.122
2.652
Fixed
6.817
asset
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.087
7.282
.392
1.415
.236
2.570

The null hypothesis for three independent


variables is:
Ho: 1=0;
2=0;
3 =0
The alternative hypothesis is:
H1: 1 0;
2 0;

30

We will use .05 level of significance

The decision rule is reject Ho >12.706


The value of t is found from the following equation:
ti=bi - 0/sbi
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Critical Value is:


t=12.706
Calculated values are:
t1(Deposit)=7.20>12.706=Null hypothesis
accepted
t2(Investment)=1.40<12.706=Null
hypothesis accepted

t3(Fixed asset)=2.57>12.706=Null
hypothesis accepted
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Variables

Calculated
value

Null
hypothesis

Conclusion

Deposit

7.20>2.120

Accepted

Less
Significant
effect on Total
deposit

Investment

1.40<2.120

Accepted

Less
Significant
effect on Total
deposit

Fixed asset

2.57>2.120

Accepted

Less
Significant
effect on Total
deposit

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