## Dissertation Empirical Analysis Project

1. Plot the cross-sectional average of deposits/assets and Non-Deposit Debt/assets across time.

You can calculate Non-Deposit Debt = Assets – Deposits – Equity. How have the averages
evolved? How would you interpret your results?

1. Run OLS regressions of quarterly loan growth on non-deposit debt/assets (one quarter lagged value) controlling for bank size (i.e. one quarter lagged natural logarithm of total asset) and
profitability (i.e. one quarter lagged return on assets) for the sub-sample of your data during the
financial crisis (i.e. 2008Q1 – 2010Q1). You should have Bank and Time fixed effects in your
regression. What is the sign and magnitude of the co-efficient on non-deposit debt/assets? Is the
coefficient significant? How will you interpret the co-efficient? Justify your findings.
2. Compute two measures / (ex-post) proxies for bank risk
a. Risk weighted asset divided by total assets
b. Non-performing loans divided by total loans
3. Plot the cross-sectional average of the above two measures across time. How have the averages
evolved across years? How would you interpret your results?
4. Run OLS regressions of the two ex-post measures of bank risk on equity over assets (one
quarter lagged values). Control for bank size (i.e. one quarter lagged natural logarithm of total
asset) and profitability (i.e. one quarter lagged return on assets) on the entire sample. You
should have Bank and Time fixed effects in your regression. What is the sign and magnitude of
the co-efficient on equity/assets? Is the coefficient significant? How will you interpret the coefficient? Justify your findings.
Note: Make sure you winsorize all your variables (per quarter at the 1st and 99th percentile) to
remove outliers.

## Lesson Chapter 5 Review Questions

Qn1. Charity is planting trees along her driveway, and she has 6 pine trees and 6 willows to plant in one row. What is the probability that she randomly plants the trees so that all 6 pine trees are next to each other and all 6 willows are next to each other? Express your answer as a fraction or a decimal number rounded to four decimal places.
Q2. A person rolls a standard six-sided die 12 times. In how many ways can he get 6 fours, 5 ones, and 1 two?

Qn3. A card is drawn from a standard deck of 52 playing cards. What is the probability that the card will be a heart and not a seven? Express your answer as a fraction or a decimal number rounded to four decimal places.
Qn4. You are going to play mini golf. A ball machine that contains 21 green golf balls, 18 red golf balls, 23 blue golf balls, and 17 yellow golf balls, randomly gives you your ball. What is the probability that you end up with a blue golf ball? Express your answer as a simplified fraction or a decimal rounded to four decimal places.
Qn6.
A newspaper company classifies its customers by gender and location of residence. The research department has gathered data from a random sample of 1738
customers. The data is summarized in the table below.

## Probability Distribution Table

What is the probability that a customer is female? Express your answer as a fraction or a decimal number rounded to four decimal places.

Qn7. A coin is tossed 3 times. What is the probability that the number of tails obtained will be 1? Express your answer as a fraction or a decimal number rounded to four decimal places.
Qn8. f a coin is tossed 5 times, and then a standard six-sided die is rolled 4 times, and finally a group of two cards are drawn from a standard deck of 52 cards without replacement, how many different outcomes are possible?

If a coin is tossed 5 times, and then a standard six-sided die is rolled 4 times, and finally a group of two cards are drawn from a standard deck of 52

cards without replacement, how many different outcomes are possible?

You can also solve this using technology.
Use The Fundamental Principle of Counting with the Combination Rule.
The experiments or tasks in this problem can be grouped into three basic types of activities, namely, tossing a coin 5
times, rolling a standard six-sided die 4
times, and drawing two cards from a deck of cards without replacement. To obtain the solution to the problem, the number of possible outcomes for each task is computed and then the Fundamental Principle of Counting is applied to the three tasks.
There are 25
outcomes possible when tossing a coin 5 times, 64 outcomes possible when rolling a standard six-sided die 4 times, and C252
outcomes possible when drawing two cards from a deck of cards without replacement. Applying the Fundamental Principle of Counting to these three tasks, we see that the total number of different outcomes possible is
25⋅64⋅C252=32⋅1296⋅1326=54991872
.Qn9.
6 cards are drawn from a standard deck without replacement. What is the probability that at least one of the cards drawn is a black card? Express your answer as a fraction or a decimal number rounded to four decimal places.
Qn11. In a history class there are 8 history majors and 8 non-history majors. 4 students are randomly selected to present a topic. What is the probability that at least 2 of the 4 students selected are non-history majors? Express your answer as a fraction or a decimal number rounded to four decimal places.
Qn12.
Jill is ordering pizza at a restaurant, and the server tells her that she can have up to three toppings: black olives, chicken, and spinach. Since she cannot decide how many of the toppings she wants, she tells the server to surprise her. If the server randomly chooses which toppings to add, what is the probability that Jill gets just spinach? Express your answer as a fraction or a decimal number rounded to four decimal places.

Qn13.
There are 77 students in a history class. The instructor must choose two students at random.
Academic Year History majors non-History majors
Freshmen 13 5
Sophomores 2 9
Juniors 12 12
Seniors 14 10
What is the probability that a junior non-History major and then another junior non-History major are chosen at random? Express your answer as a fraction or a decimal number rounded to four decimal places.

Qn14.
Customer account "numbers" for a certain company consist of 3 letters followed by 5 numbers.
Step 1 of 2 : How many different account numbers are possible if repetitions of letters and digits are allowed?
Qn15.
A coin is tossed 6 times. What is the probability that the number of heads obtained will be between 4 and 6 inclusive? Express your answer as a fraction or a decimal number rounded to four decimal places.
Qn16. A mail order company classifies its customers by gender and location of residence. The research department has gathered data from a random sample of 1936 customers. The data is summarized in the table below.

What is the probability that a customer lives in a dorm? Express your answer as a fraction or a decimal number rounded to four decimal places.

Qn18. A bag contains 9 red, 8 orange, and 7 green jellybeans. What is the probability of reaching into the bag and randomly withdrawing 16 jellybeans such that the number of red ones is 5, the number of orange ones is 7, and the number of green ones is 4? Express your answer as a fraction or a decimal number rounded to four decimal places.

Qn19.
Larissa is ordering apple pie at a restaurant, and the server tells her that she can have up to four toppings: walnuts, pecans, whipped cream, and caramel. Since she cannot decide how many of the toppings she wants, she tells the server to surprise her. If the server randomly chooses which toppings to add, what is the probability that Larissa gets just walnuts and pecans? Express your answer as a fraction or a decimal number rounded to four decimal places.

## Lesson Review question Chapter 7 Hawkeslearning - MyMathLab Questions and Answers

Qn1. Trucks in a delivery fleet travel a mean of 120 miles per day with a standard deviation of 19 miles per day. The mileage per day is distributed normally. Find the probability that a truck drives less than 146 miles in a day. Round your answer to four decimal places.
Answer: - If you would like to look up the value in a table, select the table you want to view, then either click the cell at the intersection of the row and column or use the arrow keys to find the appropriate cell in the table and select it using the Space key.

Qn2. Find the value of z such that 0.13 of the area lies to the left of z. Round your answer to two decimal places.

Qn3. Find the value of z such that 0.03 of the area lies to the right of z. Round your answer to two decimal places.

Qn4. Calculate the standard score of the given X value, X=89.7, where μ=88.2 and σ=89.4 and indicate on the curve where z will be located. Round the standard score to two decimal places.

Qn5. Consider the probability that no fewer than 75 out of 109 students will not graduate on time. Assume the probability that a given student will not graduate on time is 98% .Specify whether the normal curve can be used as an approximation to the binomial probability by verifying the necessary conditions.

Qn6. Find the area under the standard normal curve between z=−0.75 and z=1.83. Round your answer to four decimal places, if necessary.

Qn7. Consider the probability that greater than 99 out of 159 flights will be on-time. Assume the probability that a given flight will be on-time is 61%. Approximate the probability using the normal distribution. Round your answer to four decimal places.

Qn8. The Arc Electronic Company had an income of 54 million dollars last year. Suppose the mean income of firms in the same industry as Arc for a year is 40 million dollars with a standard deviation of 9 million dollars. If incomes for this industry are distributed normally, what is the probability that a randomly selected firm will earn more than Arc did last year? Round your answer to four decimal places.

Qn9. Find the value of z such that 0.9722 of the area lies between −z and z. Round your answer to two decimal places.

Qn10. A soft drink machine outputs a mean of 28 ounces per cup. The machine's output is normally distributed with a standard deviation of 2 ounces. What is the probability of filling a cup between 30 and 31 ounces? Round your answer to four decimal places.

Qn11. Consider the probability that fewer than 38 out of 542 computers will crash in a day.
Choose the best description of the area under the normal curve that would be used to approximate binomial probability.

Qn12. A psychology professor assigns letter grades on a test according to the following scheme.
A: Top 13% of scores
B: Scores below the top 13% and above the bottom 57%
C: Scores below the top 43% and above the bottom 22%
D: Scores below the top 78% and above the bottom 8%
F: Bottom 8% of scores
Scores on the test are normally distributed with a mean of 71 and a standard deviation of 8.1. Find the numerical limits for a C grade. Round your answers to the nearest whole number, if necessary.