4 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 totalassets. 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 (%).- XiDistribution Costs++1i%3D(Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.)TotalEfficiency Risk-BasedROA (%)Ratio (%)Capital (%)0.9166.2314.011.0262.1217.281.3456.5028.892.6879.6812.582.4869.6617.660.9651.0417.4413.5616.800.9062.971.0468.140.7968.0713.3817.2621.0613.911.5841.901.1176.401.1782.651.1057.7713.370.9971.7518.130.9662.1113.89- 0.3277.7934.0249.9517.7530.8416.421.511.1652.8659.5759.950.861.1013.16PrintDone

Name: 4 Profitability remains a challenge for banks and thrifts with less th
Uploaded: 2024-03-20T07:06:41.000Z
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Description: 4 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