Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help me solve this using excel miner: 1 ) Financial Condition of Banks. The file Banks.xls includes data on a sample of 2 0 banks.
Help me solve this using excel miner:
Financial Condition of Banks. The file Banks.xls includes data on a sample of banks. The
Financial Condition column records the judgment of an expert on the financial condition of
each bank. This dependent variable takes one of two possibilities Weak or Strong according
to the financial condition of the bank. The predictors are two ratios used in the financial
analyses of banks: TotLns&LsesAssets is the ratio of total loans and leases to total assets and
TotExpAssets is the ratio of total expenses to total assets.
Run a logistic regression on the entire dataset that models the status of the bank as a function
of the two financial ratios mentioned above. Specify the success class as a week this is similar to
creating a dummy that is one for financial week banks and otherwise and use the default
cutoff value of
a Write the estimated equation that associates the financial conditions of a bank with its
two predictors in three formats:
i
ii
iii.
The logit as a function of the predictors
The adds as a function of the predictors
The probability as a function of the predictors
b Consider a new bank whose total loans and leasesassets ratio and total
expensesassets ratio From your logistic regression model, estimate the
following four quantities for this bank use Excel to do all the intermediate calculations;
show your final answer to decimal places: the logit the odds, the probability of being
financial weak, and the classification of the bank use cutoff
c Classify the above record using XLMiner.
Obs Financial Condition TotCapAssets TotExpAssets TotLns&LsesAssets
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started