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ofitability remains a challenge for banks and thrifts with less than $2 billion of assets. The business problem facing a bank analyst relates to the factors that affect return on assets (ROA), an indicator of how profitable a company is relative to its total sets. Data collected from a sample of 20 community banks include the ROA (%), the efficiency ratio (%), as a measure of bank productivity (the lower the eficiency ratio, the better), and total risk-based capital (%), as a measure of capital adequacy. mplete parts (a) through (g) below. a Click the icon to view the data table. State the multiple regression equation. tX, represent the efficiency ratio (%) and let X, represent the total risk-based capital (%). Distribution Costs

ofitability remains a challenge for banks and thrifts with less than $2 billion of assets. The business problem facing a bank analyst relates to the factors that affect return on assets (ROA), an indicator of how profitable a company is relative to its total sets. Data collected from a sample of 20 community banks include the ROA (%), the efficiency ratio (%), as a measure of bank productivity (the lower the eficiency ratio, the better), and total risk-based capital (%), as a measure of capital adequacy. mplete parts (a) through (g) below. a Click the icon to view the data table. State the multiple regression equation. tX, represent the efficiency ratio (%) and let X, represent the total risk-based capital (%). Distribution Costs

Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter4: Eigenvalues And Eigenvectors
Section4.6: Applications And The Perron-frobenius Theorem
Problem 22EQ
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Profitability remains a challenge for banks and thrifts with less than $2 billion of assets. The business problem facing a bank analyst relates to the factors that affect return on assets (ROA), an indicator of how profitable a company is relative to its total assets. Data collected from a sample of 20 community banks include the ROA (%), the efficiency ratio (%), as a measure of bank productivity (the lower the efficiency ratio, the better), and total risk-based capital (%), as a measure of capital adequacy. Complete parts (a) through (g) below. Click the icon to view the data table. a. State the multiple regression equation. Let X,; represent the efficiency ratio (%) and let X,, represent the total risk-based capital (%). - X i Distribution Costs + + 1i %3D (Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.) Total Efficiency Risk-Based ROA (%) Ratio (%) Capital (%) 0.91 66.23 14.01 1.02 62.12 17.28 1.34 56.50 28.89 2.68 79.68 12.58 2.48 69.66 17.66 0.96 51.04 17.44 13.56 16.80 0.90 62.97 1.04 68.14 0.79 68.07 13.38 17.26 21.06 13.91 1.58 41.90 1.11 76.40 1.17 82.65 1.10 57.77 13.37 0.99 71.75 18.13 0.96 62.11 13.89 - 0.32 77.79 34.02 49.95 17.75 30.84 16.42 1.51 1.16 52.86 59.57 59.95 0.86 1.10 13.16 Print Done
Transcribed Image Text:Profitability remains a challenge for banks and thrifts with less than $2 billion of assets. The business problem facing a bank analyst relates to the factors that affect return on assets (ROA), an indicator of how profitable a company is relative to its total assets. Data collected from a sample of 20 community banks include the ROA (%), the efficiency ratio (%), as a measure of bank productivity (the lower the efficiency ratio, the better), and total risk-based capital (%), as a measure of capital adequacy. Complete parts (a) through (g) below. Click the icon to view the data table. a. State the multiple regression equation. Let X,; represent the efficiency ratio (%) and let X,, represent the total risk-based capital (%). - X i Distribution Costs + + 1i %3D (Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.) Total Efficiency Risk-Based ROA (%) Ratio (%) Capital (%) 0.91 66.23 14.01 1.02 62.12 17.28 1.34 56.50 28.89 2.68 79.68 12.58 2.48 69.66 17.66 0.96 51.04 17.44 13.56 16.80 0.90 62.97 1.04 68.14 0.79 68.07 13.38 17.26 21.06 13.91 1.58 41.90 1.11 76.40 1.17 82.65 1.10 57.77 13.37 0.99 71.75 18.13 0.96 62.11 13.89 - 0.32 77.79 34.02 49.95 17.75 30.84 16.42 1.51 1.16 52.86 59.57 59.95 0.86 1.10 13.16 Print Done
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