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Model Sum of Squares DF Mean Square F Sig. 1 Regression .456 4 .114 1.388 .252 Residual 3.942 48 .082 Total 4.398 52 A. Predictors: (Constant), LC, DEBT, TANG, EXT B. Dependent Variable: DPR

The document analyzes the results of an ANOVA test conducted to assess the significance and fit of a regression model. It summarizes that: 1) The ANOVA table shows that the regression model is not significant at the 95% confidence level since the significance value is 0.252, which is greater than 0.05. 2) The R-squared value of 0.104 indicates that only 10.4% of the variation in the dependent variable is explained by the model. 3) The coefficients table shows that none of the independent variables are statistically significant predictors of the dependent variable since all the significance values are greater than 0.1.

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Muhammad Ali
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133 views3 pages

Model Sum of Squares DF Mean Square F Sig. 1 Regression .456 4 .114 1.388 .252 Residual 3.942 48 .082 Total 4.398 52 A. Predictors: (Constant), LC, DEBT, TANG, EXT B. Dependent Variable: DPR

The document analyzes the results of an ANOVA test conducted to assess the significance and fit of a regression model. It summarizes that: 1) The ANOVA table shows that the regression model is not significant at the 95% confidence level since the significance value is 0.252, which is greater than 0.05. 2) The R-squared value of 0.104 indicates that only 10.4% of the variation in the dependent variable is explained by the model. 3) The coefficients table shows that none of the independent variables are statistically significant predictors of the dependent variable since all the significance values are greater than 0.1.

Uploaded by

Muhammad Ali
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as RTF, PDF, TXT or read online on Scribd
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ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression .456 4 .114 1.388 .252a

Residual 3.942 48 .082

Total 4.398 52

a. Predictors: (Constant), LC, DEBT, TANG, EXT

b. Dependent Variable: DPR

To measure the model fit I interpret the ANOVA table first. ANOVA table explained the deviation
in the dependent variable. In this table If Sig < .01, then the model is significant at 99%, if Sig
< .05, then the model is significant at 95%, and if Sig <.1, the model is significant at 90%.
Significance implies that we can accept the model. If Sig>.,1 then the model was not significant
(a relationship could not be found) or "R-square is not significantly different from zero." In my
case significance of model is ,252 which is greater than .05 . it means that model is not
significant at 95%. The results show the non significant relationship of dependent variable and
independent variable.

In the ANOVA table the TSS (Total Sum of Squares) is the total deviations in the dependent
variable. The aim of the regression is to explain these deviations. In my result TSS is 4.398. The
ESS (Explained Sum of Squares) is the amount of the TSS that could be explained by the model.
In my results the ESS is .456. The RSS is the amount that could not be explained (TSS minus
ESS). In my results RSS is 3.942.
Model Summary

Adjusted R Std. Error of the


Model R R Square Square Estimate

1 .322a .104 .029 .2865919

a. Predictors: (Constant), LC, DEBT, TANG, EXT

Adjusted R-square
Adjusted R-square Measures the proportion of the variance in the dependent variable
(DIVIDEND PAYOUT RATIO) that is explained by variations in the independent variables. In
this table the “Adjusted R-Square” shows that 2.9% of the variance is explained.

R-square
The R-square is the ratio of ESS/TSS. It captures the percent of deviation from the mean in the
dependent variable that could be explained by the model. In my result R square is .104, which
means that 10.4 % of deviation from the mean in the dependent variable is explained by the
model.
Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) .375 .149 2.523 .015

TANG .297 .213 .199 1.395 .170

DEBT .054 .102 .074 .529 .599

EXT -.219 .244 -.133 -.897 .374

LC -.006 .003 -.272 -1.871 .067

a. Dependent Variable: DPR

The table “Coefficients” provides information on the confidence with which we can support the
estimate for each such estimate. If the value in “Sig.” is less than 0.05, then we can assume that
the estimate in column “B” can be asserted as true with a 95% level of confidence. So I interpret
the "Sig" value first. If this value is more than 0 .1 then the coefficient estimate is not reliable
because it has "too" much dispersion/variance. In my results all the independent variables are not
statistically significant.

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