Increasingly, more women are becoming owners of small businesses. However, questions concerning how they are treated by banks and other financial institutions have been raised by womens groups. Banks are particularly important to small businesses, since studies show that bank financing represents about one-quarter of total debt, and that for medium-size businesses the proportion rises to approximately one-half. If womens requests for loans are rejected more frequently than are mens requests, or if women must pay higher interest charges than men do, women have cause for complaint. Banks might then be subject to criminal as well as civil suits.

To examine this issue, a research project was launched. The researchers surveyed a total of 1,165 business owners, of whom 115 were women. The percentage of women in the sample, 9.9%, compares favourably with other sources that indicate that women own about 10% of established small businesses at the time. The survey asked a series of questions to men and women business owners who applied for loans during the previous month. It also determined the nature of the business, its size, and its age. Additionally, the owners were asked about their experiences in dealing with banks.

The questions asked in the survey included the following.

1. Gender of the business owner (1 = Female; 2 = Male)
2. Was the loan approved? (1 = No; 2 )
3. If it was approved, what was the interest rate (i.e. rate above prime)
4. Type of business (1 = Proprietorship; 2 = Partnership; 3 = Corporation)
5. Annual gross sales (in thousands of dollars)
6. Age of the business (in years)

1&2 = two sample z-test

For this question you do not have to carry out the analysis I have not provided the actual data. Instead, develop an analysis plan to examine the question of alleged discrimination against women by banks. Provide a list of statistical analyses descriptive, inferential, regression modelling that could be undertaken. Be specific: for each inferential or modelling technique you suggest, state the outcome variable and the predictor variable(s).