Determine the average operating expense ratio for a savings, Econometrics

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Determine the average operating expense ratio for a savings

Referring to Exercise 1 again:

a. Holding constant the effects of branching (X1), determine the level of total assets that minimizes the average operating expense ratio.

b. Determine the average operating expense ratio for a savings and loan association with the level of total assets determined in Part (a) and 1 branch. Same question for 10 branches

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Econometrics: Determine the average operating expense ratio for a savings

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