44
b. Test Coefficient of Determination R
2
According to Wihandaru S. P., coefficient of determination R2 test is used to measure proportion of dependent variable
variance which is explained by independent variable. Steel, R. G. D. and Torrie, J. H, 1960, had opinion regarding coefficient of
determination R2. Coefficient of determination R
2
, according to them, is used in the context of statistical models whose main purpose
is the prediction of future outcomes on the basis of other related information. R
2
is most often seen as a number between 0 and 1.0, used to describe how well a regression line fits a set of data.
An R
2
near 1.0 indicates that a regression line fits the data well, while an R
2
closer to 0 indicates a regression line does not fit the data very well. It is the proportion of variability in a data set that is
accounted for by the statistical model. c.
Simultaneous Significance Testing F- Test
Essentially, F- test has purpose to know whether among independent variables simultaneously have significant influence
toward dependent variable. Independent variables in this research are Original Local Government Revenue PAD and General Allocation
Fund DAU whereas dependent variable is Local Government Expenditure BD. So, F- test has a function to know the influence
Original Local Government Revenue PAD and General Allocation Fund DAU whereas dependent variable is Local Government
45 Expenditure BD.
. α used for this research is 0.05 5 with
assumption:
1. F
test
F
table
, independent variables simultaneously not influence towards dependent variable or hypothesis is rejected.
2. F
test
F
table
, independent variables simultaneously influence significantly towards dependent variables or hypothesis is
accepted.
d. Partial Significance Test t- Test
Partial Significance Test or t- test basically has purpose to know how far and how much the influence independent variables
toward dependent variables partially. In this research, t- test is done to know the influence of Original Local Government Revenue PAD
and General Allocation Fund DAU as independent variables
towards Local Government Expenditure BD as dependent variable.
Assumption used for this test are if the significance value of t more than α significance value α, then hypothesis is rejected but
if on contrary the significance value of t less than α significance
value α, so hypothesis is accepted. Level of significance α use in this research is 0.05 5.
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