6
[5
BANKING STANDARDS
amounts in each line so as to get the net average percentage
deviation for the factor in the caption treated as the dependent
variable; and (8) reversing processes (6) and (7) so as to get the
average percentage dispersion of the factor in the caption, when
used as the independent variable, and the net average percentage
dispersion for the factor in the stub, when treated as
the dependent variable.
The results secured from these processes for two series are
contained in Table 96. The total columns at the right show, for
districts with ratios of loans and discounts to earning assets
which deviate different percentage amounts above or below their
respective seven-year averages, the net percentage amount of
deviation in their ratios of gross earnings to earning assets—the
loans and discounts ratios being the independent and the gross
earnings ratios the dependent variable. On the other hand, the
totals at the bottom of the table show, for districts with ratios
of gross earnings to earning assets which deviate different percentage
amounts above or below their respective seven-year averages,
the net average percentage amount of deviation in their
ratios of loans and discounts to earning assets—the gross earnings
ratios being the independent, and loans and discounts the dependent
variable.
By carrying through the successive steps enumerated above,
the net average percentage deviation of ratios of gross earnings
ior each percentage group-deviation of ratios of loans and discounts,
as shown in Table 97, was secured. In a similar manner,
the net average percentage deviation of ratios of loans and discounts
for each percentage group-deviation of gross earnings,
as given in Table 131, was obtained.
The procedure followed in correlating district differences in
paired series is the same as that used in correlating year-to-year
changes and deviations from the levels for the country as a
whole, the only exception being, of course, that the deviations
and changes are measured in ways suitable to the comparisons
involved.
