Question: Efficiency Total Risk-Based ROA (%) Ratio (%) Capital (%) 0.83 67.37 15.76 1.16 61.94 12.89 0.99 71.75 18.13 1.45 45.81 20.77 0.73 61.73 12.50 0.90



Efficiency Total Risk-Based ROA (%) Ratio (%) Capital (%) 0.83 67.37 15.76 1.16 61.94 12.89 0.99 71.75 18.13 1.45 45.81 20.77 0.73 61.73 12.50 0.90 65.46 16.12 1.21 87.62 21.10 3.63 82.47 11.47 0.90 62.97 13.56 1.15 63.52 15.18 0.97 63.30 24.93 0.60 63.31 13.94 0.86 64.23 14.20 1.14 56.32 16.10 5.24 82.22 21.24 0.92 65.41 14.04 1.13 66.32 16.33 1.10 57.77 13.37 0.81 69.59 13.27 1.89 62.02 16.82 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. d. Construct a 95% confidence interval estimate for the mean ROA when the efficiency ratio is 50% and the total risk-based capital is 10%. 1x = % s (Round to one decimal place as needed.) 1% Sty IX Efficiency Total Risk-Based ROA (%) Ratio (%) Capital (%) 0.83 67.37 15.76 1.16 61.94 12.89 0.99 71.75 18.13 1.45 45.81 20.77 0.73 61.73 12.50 0.90 65.46 16.12 1.21 87.62 21.10 3.63 82.47 11.47 0.90 62.97 13.56 1.15 63.52 15.18 0.97 63.30 24.93 0.60 63.31 13.94 0.86 64.23 14.20 1.14 56.32 16.10 5.24 82.22 21.24 0.92 65.41 14.04 1.13 66.32 16.33 1.10 57.77 13.37 0.81 69.59 13.27 1.89 62.02 16.82 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. d. Construct a 95% confidence interval estimate for the mean ROA when the efficiency ratio is 50% and the total risk-based capital is 10%. 1x = % s (Round to one decimal place as needed.) 1% Sty IX
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