Calculate the return on equity

Assignment Help Basic Statistics
Reference no: EM131158207

In the banking industry, the return on equity ratio or percentage is used to evaluate the financial performance of a bank. Such information is extremely valuable to investors.

Calculate the return on equity (ROE) for a sample of 20 banks for the year before the Sarbanes-Oxley Act was enacted. For the same sample of banks, calculate the ROE for the year following the enactment of the Sarbanes-Oxley Act.

Later, answer the following questions:

• After the enactment of the Sarbanes-Oxley Act, was the average bank's ROE lower than it was before the act? If so, why do you think that was the case?

• What is the null hypothesis for this hypothesis test?

• What is the alternative hypothesis for this hypothesis test?

• Choose at least three different significant levels to conduct the hypothesis test. Is it possible that a Type I error occurred with the hypothesis test? Why or why not?

• Is it possible that a Type II error occurred? Why or why not?

Reference no: EM131158207

Questions Cloud

Describe in detail one theory on changing behaviors found : Describe in detail one theory on changing behaviors found in your research. Select a real work example and explain how you would apply this concept to that situation.
Analyze the bubble sort method of sorting data : Analyze the bubble sort method of sorting data? Analyze the selection sort method of sorting data?
Prepare the consolidated income statement for 2013 : Prepare the Consolidated Income Statement for 2013-  What is the NCI net income for 2013? - What is the value of ending inventory on the Consolidated Balance Sheet at Dec 31, 2013?
Determine the minimum amount of reflux : Calculate the masses of the various streams per 1,000 lb of feed, all on a solvent-free basis. Solve the problem using equilateral-triangle coordinates, right-triangle coordinates, and solvent-free coordinates. Which method is best for thisexercis..
Calculate the return on equity : Calculate the return on equity (ROE) for a sample of 20 banks for the year before the Sarbanes-Oxley Act was enacted. For the same sample of banks, calculate the ROE for the year following the enactment of the Sarbanes-Oxley Act
Explain distributed file system : Explain Distributed File System (DFS) and give its key processes. Please reply as soon as possible?
Loss of productivity and significant costs : Interruptions to business functions can result in a loss of productivity and significant costs. Careful planning can often help avoid security incidents. However, even with planning, such incidents cannot always be prevented. Therefore, as a secur..
Identify a message in advertising : Identify a message in advertising. Describe how you perceive the message of the advertisement. Try to determine the reality of the advertisement. Distinguish between your perception and the reality of the message
How would you classify operating systems : How would you classify operating systems. Give at most five classifications

Reviews

Write a Review

Basic Statistics Questions & Answers

  Find the probability that the student makes at least a b

a student takes a 20-question multiple choice exam and guesses on each question. each question has 4 choices only one

  Scores on the psychology test have a mean of 90 and a

question which is relatively better a score of 85 on a psychology test or a score of 45 on an economics test? scores on

  Performing six steps of hypothesis testing

At a 0.05 level of significance, determine if there is a significant difference in the mean weekly units of production for the three types of work schedules (perform all six steps of hypothesis testing and show the ANOVA table).

  Easy to derive an upper bound

In communication systems, the error probability P[E] may be difficult to calculate; however it may be easy to derive an upper bound of the form P[E] ≤ . In this case, we may still want to estimate P[E] using the relative frequency n(E) of E in n t..

  Unique causal stationary solution

Consider the AR(2) model: (B)Xt = Zt where (z) = 1 1z 2z2 and fZtg is white noise. Show that there exists a unique causal stationary solution if and only if the pair (1; 2) satises all of the following three inequalities:

  Analyze sample data for time spent going to parties

National data show that, on average, college freshman spend 7.5 hours a week going to parties. President DeRosa doesn't believe that these figures apply at his school; he thinks freshman at his school party less.

  Calculate as standard error of number of undersized corks

If he were to randomly select 120 corks from the next box, then how many of these corks would John expect to be undersized?

  Use a 5 level of significance to determine whether the

according to a recent survey the average urban person consumes 1.5 kg of food per day. is this figure accurate for

  The observed mean for the sample of 16 observations was

question a pharmaceutical company manufactures large batches of analgesic caplets which are designated to contain 200

  Calculate the mean and variance for each portfolio''s returns

calculate the mean and variance for each portfolio's returns

  Children gender a certain couple is equally likely to have

children gender. a certain couple is equally likely to have either a boy child or a girl child. if the family has four

  Probability that rapid city has more precipitation next may

More precipitation for May is 12. Question: What is the probability that Rapid City has 18 days with .01 inch or more precipitation next May?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd