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 dis- 
trict-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 deter- 
mined, 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 dis- 
counts 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, ex- 
tend to each of the dispersion groups. That is, in general, when- 
ever and wherever ratios of salaries and wages are high or low, the 
standard for determining these relations being the respective dis- 
trict 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 addi- 
tion, the higher or lower the ratios of salaries and wages to earning