For Exercises 11.1 and 11.2, see page 533; for 11.3 and 11.4, see page 535; for 11.5 and 11.6, see page 537; for 11.7 and 11.8, see page 538; for 11.9 and 11.10, see page 541; for 11.11 to 11.14, see pages 543–544; and for 11.15 and 11.16, see page 544.

Question 11.3

11.3 Assets, interest-bearing deposits, and equity capital.

Table 11.2 gives data for insured commercial banks, by state or other area.3 The cases are the 50 states, the District of Columbia, Guam, and Puerto Rico. Bank assets, interest-bearing deposits, and equity capital are given in billions of dollars. We are interested in describing how assets are explained by total interest-bearing deposits and total equity capital.

  1. What is the response variable?
  2. What are the explanatory variables?
  3. What is , the number of explanatory variables?
  4. What is , the sample size?
  5. Is there a label variable? If yes, identify it.

11.3

(a) Assets. (b) Total interest-bearing deposits and total equity capital. (c) . (d) . (e) The label variable is State or Area.

banks