Calculate Standard Error And Finding Statistical Significance For The Given Data

Question

In 1974, the Franklin National Bank failed. Franklin was one of the 20 largest banks in the nation, and at the time, the largest ever to fail. Could Franklin’s weakened condition have been detected in advance by simple data analysis? The table below gives the total assets (in billions 2 of dollars)and net income (in millions of dollars) for the 20 largest banks in 1973, the year before Franklin failed.

Franklin is bank number19.

 Bank Assets Income 1 49.00 218.8 2 42.3 265.6 3 36.3 170.9 4 16.4 85.9 5 14.9 88.1 6 14.2 63.6 7 13.5 96.9 8 13.4 60.9 9 13.2 144.2 10 11.8 53.6 Bank Assets Income 11 49.0 42.9 12 42.3 32.4 13 36.3 68.3 14 16.4 48.6 15 14.9 32.2 16 14.2 42.7 17 13.5 28.9 18 13.4 40.7 19 13.2 13.8 20 11.8 22.2

(a) We expect banks with more assets to earn higher income. Make a scatter plot of these data that displays the relation between assets and income.3 Mark Franklin (Bank 19) with a separate symbol or color.

(b) Describe the overall pattern of your plot. Are there any banks with unusually high or low income relative to their assets? Does Franklin stand out from other banks in your plot?

(c) In a regression line for income as a function of assets, what would you expect the sign of the slope to be?

(d) What is the slope and its standard error? Is this relationship statistically significant at the 0.05 level?

Summary

The question belongs to Statistics and it discusses about calculation of standard error and finding statistical significance at 0.05 level for the given data.

Total Word Count 252

• Rasha

this is a very good website

• maani

I have 50 questions for the same test your page is showing only 28

• joeanne

• joeanne

hi can anyone help or guide me to my assignments. thanks

• Monik

• Cristina

This solution is perfect ...thanks

• Janete

Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes

• Sandeep

Perfect bank of solution.

• Oxana

great !

• Paul Brandon-Fritzius

thanks for the quick response. the solution looks good. :)

• tina Johnson

thnx for the answer. it was perfect. just the way i wanted it.

• Giuseppe

works fine.