At the website Lending Club®, customers can either borrow money or fund money for others’ loans. Access the data about the loans funded at Lending Club in September, 2014, which are available at MyMathLab and at the Pearson Downloadable Student Resources for Math & Stats website.
a. Construct a relative frequency histogram of the loan amounts for those who rent their home, beginning with lower class limit 0 dollars and class width 5000 dollars. Do the same for those who own their home. Also, do the same for those who have a mortgage on a home.
b. For each of the three distributions described in part (a), determine the shape.
c. For each of the three distributions, determine whether the mean or the median is the better measure of the center. Explain.
d. For each of the three distributions, find the mean and median.
e. For each of the three distributions, which is larger, the mean or the median? How does this relate to your response to part (b)?
f. Compare the medians for the three distributions. What does your comparison mean in this situation? In your opinion, why does this make sense?