The commercial banking industry is undergoing rapid changes due to advances in technology and competitive pressures in the financial services sector. The data file Banks contains selected information tabulated by Fortune concerning the revenues, profitability, and number of employees for the 51 largest U.S. commercial banks in terms of revenues. Use the information in this file to complete the following:
a. Compute the mean, median, and standard deviation for the three variables revenues, profits, and number of employees.
b. Convert the data for each variable to a z value. Consider Mellon Bank Corporation headquartered in Pittsburgh. How does it compare to the average bank in the study on the three variables? Discuss.
c. As you can see by examining the data and by looking at the statistics computed in part a, not all banks had the same revenue, same profit, or the same number of employees. Which variable had the greatest relative variation among the banks in the study?
d. Calculate a new variable: profits per employee. Develop a frequency distribution and a histogram for this new variable. Also compute the mean, median, and standard deviation for the new variable. Write a short report that describes the profits per employee for the banks.
e. Referring to part d, how many banks had a profit-per-employee ratio that exceeded 2 standard deviations from the mean?