The Regression Model

Multiple regression analysis (MRA) is a useful method for generating mathematical models where there are several (more than two) variables involved. The multiple regression can be seen as a more complex model as it employs more than one independent variable as a predictor of the dependent variable, and also we can examine the contribution of each independent variable to the prediction. While it is still a linear model we can no longer represent it as a simple straight line.

7.2.2.1 Regression Mathematical Formula Y = a + b1X1 + b2X2 + b3X3 + . . . + error

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Y: is the dependent variable,

a: is a constant value which represents the average value of Y when all Xi =0,

X1, X2, X3, etc.: are the independent variables,

b1, b2, b3, etc.: are the coefficients of the independent variables

The interesting thing about multiple regression tests is that with a lot of variables some will be more important than others in predicting variation in the dependent variable and some will have almost no influence at all. In SPSS we can choose to include all the independent variables in our regression calculation (by the enter method). We can use a variety of other methods for the regression equation, with the appropriate number of variables. We can decide which variables to include (forward method) or exclude (backward method) in the regression calculations or both (by the stepwise method). Thus, we can end up with a model that includes the variables we believe are important in the prediction and exclude the ones that have only a trivial effect on the dependent variable.

7.2.2.2 Backwards Ordinal Regression:

The Backwards ordinal regression is a statistical test used to predict the online banking based on all variables. Variable that have significant scores (sig. <0.05) are good predictors for the use of online banking. The regression analysis resulted in 41 steps; therefore the final and best model was included here (Table 7. 2).

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Table 7. 2: Regression test results, the first round

Model Coefficients a Sig.

41 (Constant) .677

1. 24/7 bank services are very important for me .016

2. Influence my behaviour; think that I must use online banking. .002

3. Use Online banking to communicate with my bank .040

4. Use Online banking for most of my banking needs .001

5. Conduct banking transactions more quickly .011

6. do not require a lot of mental effort .002

7. have clear and understandable procedures .014

8. to become confident in my sue of the transactions on my online banking website

.004

9. will not be lost during an online session .063

10.will only reach the target account .012

11.will only be used for the purpose of the original transaction .001

12.I will control the use of my information .015

13.does not allow unauthorized changes to a transaction .005

14.stop any unauthorized changes to a transaction .001

15.Provides a secure environment in which to bank .007

16.provides online banking .000

17.is processing my transactions accurately and on time .020

18.provides 24 hour access to online banking .002

19.is fair with its online banking customers .003

20.Will repay any money taken from my account through unauthorized transactions

.073

21.online banking for its safety .005

22.the Internet as a reliable medium for banking transactions .001

23.knowledge to use online banking .000

24.A significant Risk equal to A significant Opportunity .007 25.High Potential for loss equal to High potential for Gain .000

26.People come to me for advice on new technologies .092

27.Technology gives me more control over my daily life .040

28.Technology makes me efficient in my occupation .023

29.New technologies are often too complicated to be useful .020 30.Technology always seems to fail at the worst time .045 31.It is safe to give credit card number over the Internet .000 32.The human touch is very important when doing business with a company .000 33.If I provide Information over the Internet, I can never be sure if it really gets

to the right place

.000 34.When I call a business, I prefer to talk to a person rather than a machine .076

35.My Internet experience is .018

36.The largest amount that I have spent on any online transactions was (The amount in Libyan currency or Libyan Dinar (LYD))

.054

37.What is your Gender? .000

38.What is your age? .000

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7.2.2.3 Regression Findings Interpretation

Backwards ordinal regression will be used to make the regression test more understandable and to clarify the factors that were explained earlier in chapter five and analysed in chapter 6. Table 7. 3 shows that the remaining variables after the backward regression are all significant predictors of the “online banking” except 4

variables that are marginally significant. The 4 variables are displayed as number 9

“will not be lost during an online session”, 20 “Will repay any money taken from my account through unauthorized transactions”, 26 “People come to me for advice on new technologies”, and 34 “When I call a business, I prefer to talk to a person rather than a machine” in Table 7. 3.

To be more precisely, the remaining thirty four variables can be reduced by selecting only the statistically significant variables. The final model will contain only 21 variables as shown in Table 7. 3.

Table 7. 3: regression test results, the second round

Model Sig.

41 (Constant) Variables .677

1. Influence my behaviour; think that I must use online banking. .002 2. Use Online banking for most of my banking needs

3. do not require a lot of mental effort .001

4. to become confident in my sue of online banking transactions .002 5. will only be used for the purpose of the original transaction .004 6. does not allow unauthorized changes to a transaction .001

7. stop any unauthorized changes to a transaction .005

8. Provides a secure environment in which to bank .001

9. provides online banking .007

10.provides 24 hour access to online banking .000

11.is fair with its online banking customers .002

12.I trust online banking for its safety .003

13.I trust the Internet as a reliable medium for banking transactions .005

14.I have knowledge to use online banking .001

15.A significant Risk equal to A significant Opportunity .000 16.High Potential for loss equal to High potential for Gain .007 17.It is safe to give credit card number over the Internet .000 18.Human touch is very important when doing business with a company .000 19.If I provide Information over the Internet, I can never be sure if it really

gets to the right place

.000

20.What is your Gender? .000

21.What is your age? .000

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