Question
A lending institution supplied the following data on loan approvals by four loan officers. Conduct an appropriate Hypothesis test to determine whether the loan approval
A lending institution supplied the following data on loan approvals by four loan officers.
Conduct an appropriate Hypothesis test to determine whether the loan approval decision is
independent of the loan officer reviewing the loan application.
Loan Approval Decision
Loan Officer Rejected Approved Total
Sean 14 12 26
Bruce 14 18 32
Debbie 16 34 50
Susie 16 26 42
Total 60. 90 150
a) State the Null and Alternate Hypotheses.
b) Determine the value of the test statistic. Show all the steps in your solution.
c) Determine p-value. Conduct Hypothesis test using p-value approach with
= .025. What is the test decision?
d) Determine Critical-Value. Conduct Hypothesis test using Critical-Value approach with
= .05. What is the test decision?
e) Do the results in parts c) and d) lead to different conclusions? Why or Why not?
f) Based on test decisions under parts c) and d), what conclusion would you draw?
please use excel functions!
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