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 average assets (ROAA), an indicator of how profitable a company is relative to its total assets. Data collected from a sample of 20 community banks resulted in the regression model Y₁ = -4.511 +0.037X₁ +0.217X2, where Y is the ROAA (%), X₁ is the efficiency ratio (%), and X₂ is the total risk-based capital (%). Complete parts (a) through (d) below. Click the icon to view the table of data. a. Plot the residuals versus O A. Predicted Y Ŷ. Choose the correct graph below. Residuals B. H™ Predicted Y Residuals Predicted Y Q Residuals Predicted Y Q G

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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Related questions
Question
A
1 ROAA (%) Efficiency Ratio (%)
2
1.04
39.93
3
57.75
4
81.4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
0.68
7.27
1.08
0.72
0.92
0.79
1.04
1.76
1.07
1.37
0.93
0.66
1.72
1.5
0.59
2.12
1.11
1.45
1.06
B
A
53.49
71.08
65.41
68.07
68.14
68.1
64.82
48.58
63.1
59.16
49.93
54.7
81.6
75.21
69.82
49.47
57.09
с
Total Risk-Based Capital (%)
17.04
13.88
27.77
18.31
14.66
14.04
13.38
16.8
16.69
13.86
12
18.65
19.76
17.69
26.6
15.08
14.55
17.5
16.03
14.62
D
E
F
G
H
|
Transcribed Image Text:A 1 ROAA (%) Efficiency Ratio (%) 2 1.04 39.93 3 57.75 4 81.4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0.68 7.27 1.08 0.72 0.92 0.79 1.04 1.76 1.07 1.37 0.93 0.66 1.72 1.5 0.59 2.12 1.11 1.45 1.06 B A 53.49 71.08 65.41 68.07 68.14 68.1 64.82 48.58 63.1 59.16 49.93 54.7 81.6 75.21 69.82 49.47 57.09 с Total Risk-Based Capital (%) 17.04 13.88 27.77 18.31 14.66 14.04 13.38 16.8 16.69 13.86 12 18.65 19.76 17.69 26.6 15.08 14.55 17.5 16.03 14.62 D E F G H |
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 average assets (ROAA), an indicator of how profitable a company is relative to its total assets. Data collected from a sample of 20 community banks resulted
in the regression model Y₁ = −4.511 +0.037X₁₁ +0.217X2₁, where Y is the ROAA (%), X₁ is the efficiency ratio (%), and X₂ is the total risk-based capital (%).
Complete parts (a) through (d) below.
Click the icon to view the table of data.
a. Plot the residuals versus Î₁. Choose the correct graph below.
Residuals
A.
0-
0
2
Predicted Y
Residuals
B.
0
Predicted Y
Residuals
Predicted Y
U
Residuals
D.
3-
0-
Predicted Y
o
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 average assets (ROAA), an indicator of how profitable a company is relative to its total assets. Data collected from a sample of 20 community banks resulted in the regression model Y₁ = −4.511 +0.037X₁₁ +0.217X2₁, where Y is the ROAA (%), X₁ is the efficiency ratio (%), and X₂ is the total risk-based capital (%). Complete parts (a) through (d) below. Click the icon to view the table of data. a. Plot the residuals versus Î₁. Choose the correct graph below. Residuals A. 0- 0 2 Predicted Y Residuals B. 0 Predicted Y Residuals Predicted Y U Residuals D. 3- 0- Predicted Y o
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