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 (c) 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 (%) -0.0x₁0x₂ (Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.) b. Interpret the meaning of the slopes, by and by, in this problem. Choose the correct answer below OA For each increase of 1% in the ROA, the Efficiency Ratio is estimated to increase by b, % and the Risk-Based Capital is estimated to increase by b₂%. OB. For a given Risk-Based Capital, for each increase of 1% in the Efficiency Ratio, the ROA is estimated to increase by b, %. For a given Efficiency Ratio, for each increase of 1% in Risk-Based Capital, the ROA is estimated to increase by by% OC. For each increase of 1% in both the Efficiency Radio and the Risk-Based Capital, the ROA is estimated to increase by (by + b₂) %. OD. The slopes, b, and by, cannot be interpreted individually Predict the mean ROA when the efficiency ratio is 70% and the total risk-based capital is 20% (Round to two decimal places as needed)
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 (c) 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 (%) -0.0x₁0x₂ (Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.) b. Interpret the meaning of the slopes, by and by, in this problem. Choose the correct answer below OA For each increase of 1% in the ROA, the Efficiency Ratio is estimated to increase by b, % and the Risk-Based Capital is estimated to increase by b₂%. OB. For a given Risk-Based Capital, for each increase of 1% in the Efficiency Ratio, the ROA is estimated to increase by b, %. For a given Efficiency Ratio, for each increase of 1% in Risk-Based Capital, the ROA is estimated to increase by by% OC. For each increase of 1% in both the Efficiency Radio and the Risk-Based Capital, the ROA is estimated to increase by (by + b₂) %. OD. The slopes, b, and by, cannot be interpreted individually Predict the mean ROA when the efficiency ratio is 70% and the total risk-based capital is 20% (Round to two decimal places as needed)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:with less
132 billion of assets. The business problem facing a bank analyst relates to the
en un asseis (RCA). In
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 (c) 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 (%).
-0.0*₁*0%₂
(Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.)
b. Interpret the meaning of the slopes, b, and by, in this problem. Choose the correct answer below.
OA For each increase of 1% in the ROA, the Efficiency Ratio is estimated to increase by b, % and the Risk-Based Capital is estimated to increase by b₂%.
OB. For a given Risk-Based Capital, for each increase of 1% in the Efficiency Ratio, the ROA is estimated to increase by b,%. For a given Efficiency Ratio, for each increase of 1%
in Risk-Based Capital, the ROA is estimated to increase by by%
OC. For each increase of 1% in both the Efficiency Ratio and the Risk-Based Capital, the ROA is estimated to increase by (by+b₂) %.
OD. The slopes, b, and by, cannot be interpreted individually
c. Predict the mean ROA when the efficiency ratio is 70% and the total risk-based capital is 20%.
0%
(Round to two decimal places as needed.)
Transcribed Image Text:Distribution Costs
ROA (%)
0.60
1.27
4.41
0.97
0.77
1.63
1.20
1.35
3.14
0.95
1.07
2.90
1.23
1.58
1.11
1.45
0.69
0.96
1.74
1.07
Efficiency Total Risk-Based
Ratio (%)
Capital (%)
69.32
46.87
86.31
61.42
61.71
43.44
54.13
58.07
56.15
64.60
65.84
78.08
58.77
41.90
75.68
49.47
84.19
51.04
72.02
70.15
16.40
26.72
10.96
12.62
16.30
23.60
18.14
14.80
14.81
13.41
14.47
15.64
14.92
17.26
15.48
16.03
13.16
17.44
22.27
16.61
-
0
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