# A quick regression QUESTION

P

##### Guest
Hi i just have a really simple question regarding multiple regression. i have a independant variable called DPR that is the dividend payout ratio (the % percentage of dividends paid) and a dependant variable called ROA.

basically i have a significant +0.62 coeffecient for DPR. so bearing in mind the definition of DPR (i.e. tis the % of dividends paid) is the correct interpretation;

+0.62DPR means an increase in DPR means a 0.62 increase in ROA, hence paying a higher % of dividends has a positive influence on ROA.

is that entire statement true ( based on the definition of dividends)

THANKS

#### vinux

##### Dark Knight
basically i have a significant +0.62 coeffecient for DPR. so bearing in mind the definition of DPR (i.e. tis the % of dividends paid) is the correct interpretation;

+0.62DPR means an increase in DPR means a 0.62 increase in ROA, hence paying a higher % of dividends has a positive influence on ROA.
The interpretation is correct.

#### spinningfeather

##### New Member
Just out of curiosity, am I missing something (perhaps based on the definition of the variables you offered): if you are reporting the unstandardized coefficient, then the coefficient signifies the increase in the dependent given a 1 unit increase in the independent. Or?

/Tobias