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
