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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
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 78 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. Use the accompanying multiple linear regression results to complete parts (a) and (b) below. a. Construct a 95% confidence interval estimate of the population slope between ROA and efficiency ratio. 1 (Round to four decimal places as needed.)
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