Question

previously the results where these due to error the mean and S.D of the ROA and...

previously the results where these

due to error the mean and S.D of the ROA and Captial ratio has changed.

table 1

ROE ROA NIM SIZE CapitalRatio LoanRatio DEP LLP
Mean 0.093515405 0.010818037 0.030739661 635727983.9 0.094208142 0.414011964 0.76304639 0.108933885
Standard Error 0.016983681 0.001517474 0.000794931 94292447.8 0.008823651 0.007297634 0.008968638 0.012486809
Median 0.1197083 0.009033365 0.02928461 383511701 0.073990755 0.414323965 0.779212915 0.071455455
Mode 0.02968056 0.0021331 0.02834102 34286771 0.13825428 0.38738416 0.81627337 0.04674726
Standard Deviation 0.234103886 0.020916939 0.010957374 1299731697 0.121625639 0.100590939 0.123624137 0.172118783

table 2

Variable | Obs Mean Std. Dev. Min Max
-------------+---------------------------------------------------------
ROE | 190 .0935154 .2341039 -1.646488 .9451882
ROA | 190 .0085911 .0108148 -.0464716 .0390327
NIM | 190 .0307397 .0109574 .0008418 .0702612
SIZE | 190 6.36e+08 1.30e+09 640483 1.66e+10
CapitalRatio | 190 .0886147 .0924406 .0098529 .9371005
-------------+---------------------------------------------------------
LoanRatio | 190 .419179 .0900763 .1533132 .668098
DEP | 190 .7630464 .1236241 .0570503 1.055579
LLP | 190 .0721423 .0431672 .001162 .2092674

i would like to know the interpretation of  of the standard deviation to their mean of all the variables . i would like to know if the S.D is high, normal or low.

and also how can u find if the S.D is high or low when the variables values or so small

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Answer #1

The interpretation of standard deviation: the standard deviation of ROA is 0.020916939 which means on an average all the values are 0.020916939 far from the mean.

To interpret the standard deviations for all the variables you just need to change the variable name and the standard deviation value.

The standard deviation is high for ROA.

The standard deviation is normal for NIM.

The standard deviation is low for SIZE.

The standard deviation is high for CapitalRatio.

The standard deviation is normal for LoanRatio.

The standard deviation is low for DEP.

The standard deviation is high for LLP.

We can decide that S.D. is high if S.D. is close to mean or greater than the mean and it is low if S.D. is far from the mean.

Good luck with your studies!!!

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