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
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
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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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