Using regression analysis on historical loan losses, a bank has estimated the following:

X(PMC) = 0.002 = 1.5X(PM) and X(PMR) = 0.002 + 2.75X(PM)

where X(PMC) equals the profit margin in the commercial sector and X(PMR) equals the profit margin in the retail sector and X(PM) equals profit margin for its total loan portfolio. The senior bank manager questions this regression result. However, based on the regression analysis alone what sector should the bank limit its loans

Reconcile the existence of both retail and commercial loans.