NET EARNINGS IN DISTRICT I 317
results in the center section of Table 187 are secured. These
are substantially the same as those in the first part, and suggest
the conclusion that they are independent of the averages with
which the individual bank ratios are compared.
The ratios differ, however, not only by city groups but also
by volume groups. Accordingly, if the respective volume-group
averages are used as points of reference, and if the data are
treated in a manner similar to that used when the district aver-
ages are employed, what results are secured? Those obtained,
and given in the last section of Table 187, essentially agree with
those in the other parts of this table. Confidence in the signifi-
cance of these findings increases as the results in essential detail
are duplicated. But what is the meaning of these plus and minus
quantities? An answer to this question is obtained by reviewing
the methods of study used to obtain them.
TABLE 18%
CoMPARATIVE MEASURES OF REGRESSION TO TYPE FOR RATIOS OF NET
EARNINGS TO EARNING ASSETS, MEMBER Banks, BosToN
FEDERAL RESERVE DISTRICT, 1924-1925
(Percentage Differences from three different averages.)
PERCENTAGE DIFFERENCES:
(First Year of the
Pair of Vears)
Position
Groups
Average
Above
50 and over
to and under 60
yo and under 40
10 and under 30
to and under 20
Inder 10
Under 10
to and under 20
0 and under 30
jo and under 40
to and under 6¢
AA and nus
Relow
Avserace
Yearly Averages
of All Banks
Number
Second
year
ess than
First
vear®
8A
—-10.6
Seca
4
DIFFERENCES
Yearly Averages
of Citv-Groups
Number
Second
year
‘ess than
First
vear®
Ry
—~10.9
-»
“hy
r.6 |
|
a'ZY
+10.2
Yearly Averages
A Vak--wa Groups
Number
~mannd
year
‘es7 ‘han
rst
vane®
0¢€
~10.7
iL
"4
—29.8
19.7
-14.2
- 3.8
-7
.3
3
3
!
tis
| 3s
12.2
0.8
dng."
213 |
<4-10.6
*The signs relate to the prevailing changes in the ratios themselves compared with the averages in the
first and the sacond years. minus ( —) indicating that the ratios decrease. and plus (+) that they increase.
