The loan officers at a large bank can use three different methods for evaluating loan applications Loan decisions can be based on (1) the applicant 's balance sheet (B), (2) examination of key financial ratios (F), or (3) use of a new decision support system (D) In order to compare these three meth...

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The loan officers at a large bank can use three different methods for evaluating loan applications. Loan

Question:

The loan officers at a large bank can use three different methods for evaluating loan applications. Loan decisions can be based on (1) the applicant's (B), (2) examination of key (F), or (3) use of a new decision support system (D). In order to compare these three methods, four of the bank's loan officers are randomly selected. Each officer employs each of the evaluation methods for one month (the methods are employed in randomly selected orders). After a year has passed, the percentage of bad loans for each loan officer and evaluation method is determined. The data obtained by using this randomized block design are given in Table 11.19. Completely analyze the data using randomized block ANOVA.
TABLE 11.19
Results of a Loan Evaluation Experiment

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...