Basic Business Statistics, Student Value Edition
14th Edition
ISBN: 9780134685113
Author: Mark L. Berenson, David M. Levine, David F. Stephan, Kathryn Szabat
Publisher: PEARSON
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Chapter 13, Problem 78PS
An analyst has the objective of predicting the return on average tangible common (ROATCE) of banks. The analyst begins by using efficiency ratio, a measure of a bank’s ability to turn resources into revenue. A sample of 100 American banks is selected and stored in AmericanBanks.
a. Construct a
b. Interpret the meaning of
c. Use the prediction line developed in (a) to predict the
d. Determine the coefficient of determination,
e. Perform a residual analysis on your results and evaluate the regression assumptions.
f. At the 0.05 level of significance, is there evidence of a linear relationship between efficiency ratio and ROATCE?
g. Construct a
h. Construct a
i. What conclusions can you reach concerning the relationship between efficiency ratio and ROATCE?
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Chapter 13 Solutions
Basic Business Statistics, Student Value Edition
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