Evaluate the financial performance of bank

Assignment Help Accounting Basics
Reference no: EM131016437

Assignment: Hypothesis Testing

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?

Submit your answers in an eight- to ten-page Word document.

Reference no: EM131016437

Questions Cloud

What is business continuity management : What is business continuity management and who is responsible for this process at Eurostar - how does Eurostar identify and calculate different risks to their operations?
Introduction and framework for balance of assignment : Identify the company and very briefly summarize their scope of activities. Note that there are not many marks for this part of the assignment. It represents an introduction and framework for the balance of the assignment.
Explain three positive characteristics of mothering : Purpose statement slide(s) detailing the importance of positive parenting and List and explain three positive characteristics of mothering and three positive characteristics of fathering
Do the chips produced meet the desired specifications : -What are the elements that the production manager should consider in determining his company's ability to produce chips that meet specifications?
Evaluate the financial performance of bank : 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.
Examine the causes of psychopathology : Provide a brief overview of how culture is a factor in determining the expression of psychopathology. Examine the causes of psychopathology using one of the psychological perspectives in the text
Discuss the claim that social institutions are related : Discuss the claim that social institutions are related
Explain how your journal entry on the settlement date : Prepare dated journal entries for Fleming to reflect the above transactions using the current method. Do not use hedge accounting.
Describe an example of a television program : Describe an example of a television program that you believe clearly displays social deviance, and explain why you specifically selected it

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Research at least two major fraud cases

Using the Internet or Strayer databases, research at least two major fraud cases that were a result of financial statement fraud.

  Desmond drury and ty wilkins have decided to form a

desmond drury and ty wilkins have decided to form a partnership. they have agreed that drury is to invest 20000 and

  Techuxia corporation worked on four jobs during october job

techuxia corporation worked on four jobs during october job a256 job a257 job a258 and job a260. at the end of october

  Preparing multistep income statement and calculating profit

preparing multistep income statement and calculating profit percentage.assume that you have been hired by big sky

  Why is the eps number so popular

Why is the EPS number so popular? What are its limitations?

  During the year eugene had the four property transactions

during the year eugene had the four property transactions summarized below. eugene is a collector of antique glassware

  Determine the major specialty areas in the field such as

one role of seasoned experienced human resources professionals is to mentor junior professionals. you have decided to

  What amount of cash will texas collect

Texas Company invested $90,000 in a certificate of deposit on August 1, 2013. The certificate had a 6 percent annual rate of interest and a one year term to maturity.

  Income statement for melanie mielke construction corporation

Melanie Mielke's annual sales were $9,000,000, at a gross margin of 15%. Selling expenses totaled $300,000, and administrative expenses totaled $800,000. Mielke is subject to a 30% income tax rate. Prepare the 20XX income statement for Melanie M..

  Plant assets-depreciation-disposal and depletion

Illustrate journal entries required and demonstrate the calculations necessary. How to calculate a change in the periodic rate is also shown. Plant asset disposal slides illustrate the following situations: retirement, loss on sale, and gain on sa..

  Compute the book value of the mineral mine

1.In 2013, the Marion Company purchased land containing a mineral mine for $1,600,000. Additional costs of $600,000 were incurred to develop the mine. Geologists estimated that 400,000 tons of ore would be extracted.

  Organizing the information in accounts

a. Organize the information in accounts under an accounting equation. b. Prepare an income statement, balance sheet, and statement of cash flows for 2010. c. Write a memo discussing the advantages to a business of arranging a line of credit.

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