39
3. The Result of Multiple Regression Test
a. Multiple Regression To test the hypothesis Ha, the method of analysis used is
multiple regression, because it involves three independent variables and one dependent variable
Ghozali, 2013 : 96
. Regression equation model to test the hypothesis with the following formulation:
BD = α + β1 PAD + β2 DAU + β3 DAK × Ԑ
b. Test Coefficient of Determination R
2
The coefficient of determination R
2
was essentially measure how far the models ability to explain variation in the
dependent variable. Determination coefficient is between zero and one. Small value of R
2
is the ability of independent variables in explaining the dependent variable is very limited. Value close to
one means that the independent variable gives almost all the information needed to predict the variation in the dependent
variable Ghozali, 2013: 97. Coefficient determination is a statistical measurement of how well the regression line
approximates the real data point. By knowing the value of R
2
, It can determine the magnitude contribution of independent variables
toward the dependent variable. R
2
expresses a value between zero and one. If R
2
is near to 0, most of data variations cannot be
40
explained by the regression model. In this case, the regression model fits the data poorly. On the other hand, if R
2
is near to 1, most of the variation in the dependent variable can be explained by
the regression model. In other words, the regression model fits the data well Sekaran, 2010.
The closer adjusted R
2
score to 1, the better independent variables explaining dependent variable The hypothesis in this
study is influenced by the value of the corresponding variable coefficient significance after testing. Conclusion the hypothesis
made by t-test.
4. Hypothesis Testing
a. Simultaneous Significance Testing F- Test Essentially, F- test has purpose to know whether among
independent variables simultaneously have significant influence toward dependent variable
Ghozali, 2013: 98
. Independent variables in this research are Original Local Government Revenue PAD,
General Allocation Fund DAU and Special Allocation Fund DAK whereas dependent variable is Local Government Expenditure BD.
So, F- test has a function to know the influence Original Local Government Revenue PAD, General Allocation Fund DAU and
Special Allocation Fund DAK whereas dependent variable is Local
41
Government Expenditure BD. α used for this research is 0.05 5
with assumption: 1. α 0,05 Ho is accepted
2. α 0,05 Ho is rejected
b. 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
Ghozali, 2013:98
. In this research, t- test is done to know the influence of Original Local
Government Revenue PAD General Allocation Fund DAU, and Special Allocation Fund DAK 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.
E. Definition Of Operational Variable
Kategori