www.assignmentpoint.com Statistical Application Analysis On Dhaka Bank _______________________________________ www.AssignmentPoint.com

www.assignmentpoint.com Dhaka bank limited 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.

Input of spss We used Independent Variable Dependent Variable Deposit www.assignmentpoint.com Input of spss We used Independent Variable Deposit Investment Fixed Asset Dependent Variable Total Asset

Descriptive statistics www.assignmentpoint.com Descriptive statistics 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 www.assignmentpoint.com

Formula of Multiple Regression Equation: Ŷ=a+b₁x₁+b₂x₂+b₃x₃ Here, a= constant X₁=Deposit X₂=Investment X₃=Fixed asset www.assignmentpoint.com

SPSS Output of Multiple Regression Equation: Predictor Coef SE coef T 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 Ŷ= -14357.25+1.28x1+1.29x2+6.82x3 Total Asset= - 14357.25+1.28Deposit+1.29Investment+6.82Fixed Asset www.assignmentpoint.com

Coefficient of Multiple Determination www.assignmentpoint.com

Characteristics of Coefficient of Multiple Regression 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 www.assignmentpoint.com

R² = = 1 www.assignmentpoint.com R² R² measures how much in percent dependent variable is explained by independent variable R² = = 1 www.assignmentpoint.com

R²adj = 1- ÷ = .99 www.assignmentpoint.com Adjusted R² Adjusted R² is the measurement by which the variation of dependent variable can be explained R²adj = 1- ÷ = .99 www.assignmentpoint.com

Interpretation Here R² is 1and Adjusted R² is .99, which is less than R² R² 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 www.assignmentpoint.com

www.assignmentpoint.com Global Test: ANOVA We can test the ability of the independent variables x1 ,x2, x3…xk 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: β1=β2=β3=0   The alternative hypothesis is: The independent variables have significant effect on dependent variable. H1: β1 ≠ β2 ≠ β3≠ 0 www.assignmentpoint.com

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= www.assignmentpoint.com

Continued… 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 www.assignmentpoint.com

Independent variables have significant effect on dependent variable ANOVAb Model Sum of Squares df Mean Square F Sig. 1 Regression 1.120E9 3 3.732E8 968.699 .024a Residual 385257.551 Total 4 Particulars Calculated Value Null Hypothesis Comment F test 968.70 > 216 Rejected Independent variables have significant effect on dependent variable www.assignmentpoint.com

Variables for T-Test Dependent Variables Independent Variables Total Asset Deposit Investment Fixed Asset www.assignmentpoint.com

SPSS Input (Data variables) 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 www.assignmentpoint.com

Unstandardized coefficients Standardized coefficients SPSS Output of T-Test Model Unstandardized coefficients Standardized coefficients t sig B Std.Error Beta (Constant) Deposit Investment Fixed asset -14357.245 1.284 1.286 6.817 3135.832 .176 .909 2.652 .788 .112 .122 -4.578 7.282 1.415 2.570 .137 .087 .392 .236 www.assignmentpoint.com

Conducting T-Test The decision rule is reject Ho >12.706 The null hypothesis for three independent variables is: Ho: β1=0; β2=0; β3 =0 The alternative hypothesis is: H1: β1 ≠0; β2 ≠0; β3≠0 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 www.assignmentpoint.com

Comparison of value 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 www.assignmentpoint.com

Less Significant effect on Total deposit Conclusion Variables Calculated value Null hypothesis Conclusion Deposit 7.20>2.120 Accepted Less Significant effect on Total deposit Investment 1.40<2.120 Fixed asset 2.57>2.120 www.assignmentpoint.com