Modeling the deposit share of a retail bank. Exploratory research published in the Journal of Professional Services Marketing (Vol. 5, 1990) examined the relationship between deposit share of a retail bank and several marketing variables. Quarterly deposit share data were collected for 5 consecutive years for each of nine retail banking institutions. The model analyzed took the following form:
E(Yt) = β0 + β1Pt−1 + β2St−1 + β3Dt−1
where Yt = deposit share of a bank In quarter t (t = 1, 2, ... , 20), Pt−1 = expenditures on promotion-related activities in quarter t – 1, St−1 = expenditures on service- related activities in quarter t − 1, and Dt−1 = expenditures on distribution-related activities in quarter t – 1. A separate model was fit for each bank with the results shown in the table.
a. Interpret the values of R2 for each bank.
b. Test the overall adequacy of the model for each bank using α = .01.
c. Conduct the Durbin-Watson d-test for
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Statistics for Business and Economics (13th Edition)
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