A financial institution wants to explore the relationship between a loan application approval time and the independent variables of annual salary of the applicant and years of employment.

(a) What is the equation of a regression model?

(b) In order to satisfy governmental regulations, the institution wishes to determine if gender has an impact on approval time. What is the model now? What hypothesis would you test to establish no impact of gender?

(c) The institution has three branches and the CEO is interested in determining if there are differences in efficiency as determined by the mean approval time.

Write down the model equation. What null hypothesis would you test to address the CEO’s concern?