SERIES CORRELATED WITH EXPENSES 243
TABLE 144

CORRELATION OF DisTRICT DEVIATIONS OF RATIOS IN PAIRED SERIES
(Percentage Deviations from the Respective District Averages, Period 1019-1028)

Position

INDEPENDENT VARIABLE—
Ratios of Salaries and Wages to
Earning Assets

Di Fon = ve
istance fr-~- Ayerara

Percentage
Groups

“rerage
cg

Number
of
District-Years


DEPENDENT VARIABLES—
Vat Averaoce Percentage

Interest
on
Deposits
to
‘arning

interest and
Discounts on
"srrowed
" "oney
..arning
Accate

Tatal N

Above

Below

10 and over.
to I.
Ted ar

y ¢
_—

I
36.40

mst

to earning assets in the respective districts as standards, and by
expressing the yearly deviations of the ratios in percentage form,
the distribution shown in the stub (horizontal) classes of Table
144 is secured. With the data treated in this manner, it is found
that in 53 district-years the ratios were above, and in 31 district-years
 they were below the standard levels. On a percentage
basis, the deviations range from 10 or more above to 10 or more
below, the form of the distribution approaching the “U” type.
If, then, for the district-year deviation groups, the net percentage
deviations by sign and amount in the correlated series are determined,
 the percentages found in the caption (column) classes are
secured.
Based upon direction of deviation alone, ratios of interest on
deposits are positively correlated, and ratios of interest and discounts
 on borrowed money are negatively correlated with ratios
of salaries and wages, all expense amounts being expressed in
terms of earning assets. These types of relations, moreover, extend
 to each of the dispersion groups. That is, in general, whenever
 and wherever ratios of salaries and wages are high or low, the
standard for determining these relations being the respective district
 averages, paired ratios of interest on deposits tend to be high
or low, respectively, and paired ratios of interest and discounts
on borrowed money tend to be low or high, respectively. In addition,
 the higher or lower the ratios of salaries and wages to earning