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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 X₁, represent the efficiency ratio (%) and let X₂, represent the total risk-based capital ₁=+*₁1+x21 (Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.) Distribution Costs ROA (%) 1.13 1,22 0.82 1.15 0.81 1.23 0.67 1.35 0.95 0.71 0.69 1.10 0.87 1.02 0.86 1.74 1.02 1.76 0.90 0.68 Efficiency Total Risk-Based Capital (%) Ratio (%) 66.32 46.88 50.93 54.66 69.59 68.37 67.05 58.07 74.22 68.34 78.15 59.95 69.41 62.23 59.57 72.02 57.76 68.10 67.96 72.80 [] Print 16.33 12.90 13.39 16.71 13.27 18.42 15.56 14.80 15.75 11.10 16.56 13.16 13.02 17.18 16.42 22.27 13.54 16.69 15.37 14.14 Done - X D

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 X₁, represent the efficiency ratio (%) and let X₂, represent the total risk-based capital ₁=+*₁1+x21 (Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.) Distribution Costs ROA (%) 1.13 1,22 0.82 1.15 0.81 1.23 0.67 1.35 0.95 0.71 0.69 1.10 0.87 1.02 0.86 1.74 1.02 1.76 0.90 0.68 Efficiency Total Risk-Based Capital (%) Ratio (%) 66.32 46.88 50.93 54.66 69.59 68.37 67.05 58.07 74.22 68.34 78.15 59.95 69.41 62.23 59.57 72.02 57.76 68.10 67.96 72.80 [] Print 16.33 12.90 13.39 16.71 13.27 18.42 15.56 14.80 15.75 11.10 16.56 13.16 13.02 17.18 16.42 22.27 13.54 16.69 15.37 14.14 Done - X D

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 12PPS
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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 X₁, represent the efficiency ratio (%) and let X₂; represent the total risk-based capital (%). Ý TO DX DX = + + (Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.) Distribution Costs ROA (%) 1.13 1.22 0.82 1.15 0.81 1.23 0.67 1.35 0.95 0.71 0.69 1.10 0.87 1.02 0.86 1.74 1.02 1.76 0.90 0.68 Efficiency Total Risk-Based Ratio (%) Capital (%) 66.32 16.33 46.88 12.90 50.93 13.39 54.66 16.71 69.59 13.27 68.37 18.42 67.05 15.56 58.07 14.80 15.75 11.10 16.56 Print 74.22 68.34 78.15 59.95 69.41 62.23 59.57 72.02 57.76 68.10 67.96 72.80 13.16 13.02 17.18 16.42 22.27 13.54 16.69 15.37 14.14 Done X
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 X₁, represent the efficiency ratio (%) and let X₂; represent the total risk-based capital (%). Ý TO DX DX = + + (Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.) Distribution Costs ROA (%) 1.13 1.22 0.82 1.15 0.81 1.23 0.67 1.35 0.95 0.71 0.69 1.10 0.87 1.02 0.86 1.74 1.02 1.76 0.90 0.68 Efficiency Total Risk-Based Ratio (%) Capital (%) 66.32 16.33 46.88 12.90 50.93 13.39 54.66 16.71 69.59 13.27 68.37 18.42 67.05 15.56 58.07 14.80 15.75 11.10 16.56 Print 74.22 68.34 78.15 59.95 69.41 62.23 59.57 72.02 57.76 68.10 67.96 72.80 13.16 13.02 17.18 16.42 22.27 13.54 16.69 15.37 14.14 Done X
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