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 88 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. Use the accompanying multiple linear regression results to complete parts (a) and (b) below. Variable Coefficient Standard Error t Statistic p-value Intercept −0.21762 0.39401 −0.55 0.5822 Efficiency Ratio, X1 0.01443 0.00498 2.90 0.0048 Risk-Based Capital, X2 0.04002 0.01034 3.87 0.0002 a. Construct a 95% confidence interval estimate of the population slope between ROA and efficiency ratio. ______≤β1≤________________ (Round to four decimal places as needed.)
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 88 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. Use the accompanying multiple linear regression results to complete parts (a) and (b) below. Variable Coefficient Standard Error t Statistic p-value Intercept −0.21762 0.39401 −0.55 0.5822 Efficiency Ratio, X1 0.01443 0.00498 2.90 0.0048 Risk-Based Capital, X2 0.04002 0.01034 3.87 0.0002 a. Construct a 95% confidence interval estimate of the population slope between ROA and efficiency ratio. ______≤β1≤________________ (Round to four decimal places as needed.)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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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
88
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. Use the accompanying multiple linear regression results to complete parts (a) and (b) below.|
Variable
|
Coefficient
|
Standard Error
|
t Statistic
|
p-value
|
|---|---|---|---|---|
|
Intercept
|
−0.21762
|
0.39401
|
−0.55
|
0.5822
|
|
Efficiency Ratio, X1
|
0.01443
|
0.00498
|
2.90
|
0.0048
|
|
Risk-Based Capital, X2
|
0.04002
|
0.01034
|
3.87
|
0.0002
|
a. Construct a 95% confidence interval estimate of the population slope between ROA and efficiency ratio.
______≤β1≤________________
(Round to four decimal places as needed.)
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