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StatisticsQ&A LibraryLet’s consinder a mortgage application using HMDA (The Home Mortgage Disclosure Act). Here is a sample from 30 mortgage applications. IDloanamtincomehprice11096315521851372643121531284125781255119371496153651717380188484810058125911078158104131116.51111554128122481172801312660157.51426019232515904014516503623017125451251812555145191586217520130292092120477260223028150231146014324188912532518785285268444105274502656502810849120291005312530532466loanamt = Amount of Mortgage Loan Application (in $1000)income = Applicant’s Annual Income (in $1000)hprice = House Price to buy (in $1000)6) t test for the coefficient of income (Ho: B1 = 0 )7) F statistics and perform the test for the model8) Variance of et9) According to the model what are the predicted loan amount if applicants have annual income of $50,000, $100,000, and $200,000 and their confidence intervals?10) List and explain the assumptions you made for a simple regression modelQuestion

Asked Nov 9, 2019

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Let’s consinder a mortgage application using HMDA (The Home Mortgage Disclosure Act). Here is a sample from 30 mortgage applications.

ID |
loanamt |
income |
hprice |

1 |
109 |
63 |
155 |

2 |
185 |
137 |
264 |

3 |
121 |
53 |
128 |

4 |
125 |
78 |
125 |

5 |
119 |
37 |
149 |

6 |
153 |
65 |
171 |

7 |
380 |
188 |
484 |

8 |
100 |
58 |
125 |

9 |
110 |
78 |
158 |

10 |
41 |
31 |
116.5 |

11 |
115 |
54 |
128 |

12 |
248 |
117 |
280 |

13 |
126 |
60 |
157.5 |

14 |
260 |
192 |
325 |

15 |
90 |
40 |
145 |

16 |
50 |
36 |
230 |

17 |
125 |
45 |
125 |

18 |
125 |
55 |
145 |

19 |
158 |
62 |
175 |

20 |
130 |
29 |
209 |

21 |
204 |
77 |
260 |

22 |
30 |
28 |
150 |

23 |
114 |
60 |
143 |

24 |
188 |
91 |
253 |

25 |
187 |
85 |
285 |

26 |
84 |
44 |
105 |

27 |
450 |
265 |
650 |

28 |
108 |
49 |
120 |

29 |
100 |
53 |
125 |

30 |
53 |
24 |
66 |

loanamt = Amount of Mortgage Loan Application (in $1000)

income = Applicant’s Annual Income (in $1000)

hprice = House Price to buy (in $1000)

6) t test for the coefficient of income (Ho: B1 = 0 )

7) F statistics and perform the test for the model

8) Variance of e_{t}

9) According to the model what are the predicted loan amount if applicants have annual income of $50,000, $100,000, and $200,000 and their confidence intervals?

10) List and explain the assumptions you made for a simple regression model

Step 1

Hey there! Thank you for posting the question. However, since your question has more than 3 parts, according to our policy, we have solved the first 3 parts for you. If you need help with any other part, please re-post the question and mention the part you need help with.

Step 2

6).

The null hypothesis:

The slope coefficient of income is not significant.

Alternative hypothesis:

The slope coefficient of income is not significant.

Step 3

Step- by-step procedure to obtain the t test for the coefficient of income using Minitab software as follows:

- Choose
**Stat > Regression > Regression**. - In
**Response**, enter the column containing the res...

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