In the 2009 stress tests applied to the nation’s biggest banks, the U.S. government determined that 10 of them needed a greater cushion of capital in order to absorb losses in a worst-case economic scenario. The banks, the bailout they received, and the additional cushion they were deemed to need are as shown below. Source: “Bank Stress-Test Results,” USA Today, May 8, 2009, p. 3B. x = Bailout y = Added Cash Bank Received Cushion Needed Bank of America $45.0 billion $33.9 billion Wells Fargo 25.0 13.7 GMAC 5.0 11.5 Citigroup 50.0 5.5 Regions 3.5 2.5 SunTrust 4.9 2.2 KeyCorp 2.5 1.8 Morgan Stanley 10.0 1.8 Fifth Third Bancorp 3.4 1.1 PNC 7.6 0.6 Draw a scatter diagram representing these data. Using the “eyeball” method fit a straight line to the data. Does there appear to be any relationship between the variables? If so, is the relationship direct or inverse?
2.43 In the 2009 stress tests applied to the nation’s biggest banks, the U.S. government determined that 10 of them needed a greater cushion of capital in order to absorb losses in a worst-case economic scenario. The banks, the bailout they received, and the additional cushion they were deemed to need are as shown below.
Source: “Bank Stress-Test Results,” USA Today, May 8, 2009, p. 3B.
x = Bailout y = Added Cash
Bank Received Cushion Needed
Bank of America $45.0 billion $33.9 billion
Wells Fargo 25.0 13.7
GMAC 5.0 11.5
Citigroup 50.0 5.5
Regions 3.5 2.5
SunTrust 4.9 2.2
KeyCorp 2.5 1.8
Morgan Stanley 10.0 1.8
Fifth Third Bancorp 3.4 1.1
PNC 7.6 0.6
- Draw a
scatter diagram representing these data. - Using the “eyeball” method fit a straight line to the data.
- Does there appear to be any relationship between the variables? If so, is the relationship direct or inverse?
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