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Remaining Time: 1 hour, 22 minutes, 20 seconds. Question Completion Status: Question 5 Use the data (a sample of 20 banks given Use the data

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Remaining Time: 1 hour, 22 minutes, 20 seconds. Question Completion Status: Question 5 Use the data (a sample of 20 banks given Use the data la sample of 20 banks) given below to answer the following question(s). Obs Financial Condition TotCap/Assets TotExp/Amets TotLnsl.ses/Assets 119. 70. 120.65 21 10 . 110 .62 3 16 .9 0. 091.02 1 5 . 80 .1 0.67 5 1 43 0.11 0.69 619. 10. 130.74 7 1 1 1.9 0.1 0.79 8 1 810 .13 0.63 9 1 9 .3 0.16 0.72 101 110.16 0.57 1 11. 0 .08 0.43 11 5 20. 0 .12 0 9.8 0.07 06 79) 0.08 0.53 0 6 9. 0 .09 0.73 0 5 12. 0 .09 0 3 18. 0 .08 0.49 0 72 0 .11 0.55 190 14 1 0 .08 0.44 0 3 8. 0 .08 0.51 The Financial Condition" column records the judgment of an expert on the financial condition of each bank. This dependent variable take expenses to total assets. The target is to use the two ratios for classifying the financial condition of a new bank. Run a logiste repression on the entire dataset the models the status of a bank as a function of the two financial measures provided. Spec o predict in the formats A) Write the estimated equation that sites the financial condition of a bank with s L logit as a function of the predictors: Lodds as a function of the predictors: lli, probability as a function of the predictions b) Consider a new bank whose total loans and lease/assets ratio 07 and total expenses 009. From your se reger L Interpret the estimated coefficient for the total loans and less to sot t o ( d) When a bank that is in poor financial condition is classified as financially strong, the s e s) in terms of the odds of being l ation cost is much higher than wher A Click Submit to complete this assessment Remaining Time: 1 hour, 22 minutes, 20 seconds. Question Completion Status: Question 5 Use the data (a sample of 20 banks given Use the data la sample of 20 banks) given below to answer the following question(s). Obs Financial Condition TotCap/Assets TotExp/Amets TotLnsl.ses/Assets 119. 70. 120.65 21 10 . 110 .62 3 16 .9 0. 091.02 1 5 . 80 .1 0.67 5 1 43 0.11 0.69 619. 10. 130.74 7 1 1 1.9 0.1 0.79 8 1 810 .13 0.63 9 1 9 .3 0.16 0.72 101 110.16 0.57 1 11. 0 .08 0.43 11 5 20. 0 .12 0 9.8 0.07 06 79) 0.08 0.53 0 6 9. 0 .09 0.73 0 5 12. 0 .09 0 3 18. 0 .08 0.49 0 72 0 .11 0.55 190 14 1 0 .08 0.44 0 3 8. 0 .08 0.51 The Financial Condition" column records the judgment of an expert on the financial condition of each bank. This dependent variable take expenses to total assets. The target is to use the two ratios for classifying the financial condition of a new bank. Run a logiste repression on the entire dataset the models the status of a bank as a function of the two financial measures provided. Spec o predict in the formats A) Write the estimated equation that sites the financial condition of a bank with s L logit as a function of the predictors: Lodds as a function of the predictors: lli, probability as a function of the predictions b) Consider a new bank whose total loans and lease/assets ratio 07 and total expenses 009. From your se reger L Interpret the estimated coefficient for the total loans and less to sot t o ( d) When a bank that is in poor financial condition is classified as financially strong, the s e s) in terms of the odds of being l ation cost is much higher than wher A Click Submit to complete this assessment

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