This problem will use the subprime data to walk you through

This problem will use the subprime data to walk you through calculating a difference in means test. To begin this problem first download subprime data and load it into STATA. These are data collected by the U.S. government on all home-lending transactions in Cape Coral and Fort Myers (Florida). They contain information on each loan applicant and give information on whether that applicant received a subprime loan (highrate) as well as on the amount of the loan in $10,000 units (loanamount). They also contain basic demographic information such as race, gender, and income. For the remainder of the problem, we will treat this dataset as the entire, true population. Unless otherwise stated, you can assume that the samples we will draw are large enough to use the Normal approximation.

Connect with a professional writer in 5 simple steps

Please provide as many details about your writing struggle as possible

Academic level of your paper

Type of Paper

When is it due?

How many pages is this assigment?

You are a policy researcher trying to unpack what happened in the recent U.S. foreclosure crisis. You have narrowed your research to the Cape Coral-Fort Myers area, the area of the United States most devastated by the foreclosure crisis. Suppose a lawsuit has been _led in U.S. District Court by a group of Fort Myers women who claim that women in the area were loaned less money than men. The defendants- a group of local mortgage lenders- are vigorously denying these claims, and the case is now advancing to trial. Having heard about your expertise in this area, the federal judge hearing the case has brought you in to provide expert testimony. Your task in this problem is to assist the judge in her determination.

Using STATA, calculate (1) the average loan amount for women in your sample, (2) the average loan amount for men, and (3) and (4), the sample standard deviation for each. Report those results in a nicely formatted table.

Let μ_m and μ_w equal the average loan amount for men and women. Logically, then, the defendants are arguing that μ_m-μ_w = 0, while the plaintiffs believe that μ_m-μ_w > 0. Treat the defendant’s argument as the null hypothesis, and derive the test statistic for this hypothesis. Do not use STATA for this part and be sure to show all your work.

The judge wants to know whether to (1) dismiss the case or to (2) allow the case to proceed. She would like to dismiss if the defendants are right, and she would like the case to proceed if the women’s group is right. Given this information, explain what the Type I and the Type II errors are for this problem.

What are the rejection regions of this test statistic for a = 0.05 and a= 0.01? Does the test statistic for your sample fall in these regions? Can you reject the null hypothesis?

E) Fortunately, STATA has commands so you don’t have to compute test statistics by hand. Use the following command to conduct the test you just completed:

ttest loanamount, by(woman) unequal

The last argument to this command, unequal tells STATA not to assume equal variances for the two groups. Report the 95% confidence interval for each mean. Does the confidence interval for the sample mean of women include the sample mean for men? Does the confidence interval for the difference include zero? What is the p-value for the test statistic? Is it less than a? What does this suggest to you about confidence intervals of means, the confidence interval of the difference in means, and hypothesis tests about the difference?

F) Discuss the conclusions of your research, giving the judge your ultimate recommendation. Justify your recommendation using language that non-POL 551 students could understand. Should she dismiss the case? Or do the women’s rights groups have a basis to proceed?

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our Guarantees

At, we value all our customers, and for that, always strive to ensure that we deliver the best top-quality content that we can. All the processes, from writing, formatting, editing, and submission is 100% original and detail-oriented. With us, you are, therefore, always guaranteed quality work by certified and experienced writing professionals. We take pride in the university homework help services that we provide our customers.

Money-Back Guarantee

As the best homework help service in the world, 111 Papers ensures that all customers are completely satisfied with the finished product before disbursing payment. You are not obligated to pay for the final product if you aren’t 100% satisfied with the paper. We also provide a money-back guarantee if you don’t feel that your paper was written to your satisfaction. This guarantee is totally transparent and follows all the terms and conditions set by the company.

Read more

Zero-Plagiarism Guarantee

All products that we deliver are guaranteed to be 100% original. We check for unoriginality on all orders delivered by our writers using the most advanced anti-plagiarism programs in the market. We, therefore, guarantee that all products that we submit to you are 100% original. We have a zero-tolerance policy for copied content. Thanks to our strict no plagiarized work rule, you can submit your homework to your professor without worrying.

Read more

Free-Revision Policy

TThis is one of the most cherished courtesy services that we provide to help ensure that our customers are completely satisfied with our finished products. Delivering the best final product to our customers takes multiple inputs. prides itself on delivering the best university homework help services in the writing industry. And, in part, our free revision policy is how we do it. What’s more, all our revisions are 100% free without any strings attached.

Read more

Privacy Policy

Client privacy is important to use. We know and understand just how important customers value their privacy and always want to safeguard their personal information. Thus, all the information that you share with us will always remain in safe custody. We will never disclose your personal information to any third party or sell your details to anyone. 111 Papers uses the most sophisticated, top-of-the-line security programs to ensure that our customers’ information is safe and secured.

Read more

Fair-Cooperation Guarantee

Placing your order with us means that you agree with the homework help service we provide. We, in turn, will endear to ensure that we do everything we can to deliver the most comprehensive finished product as per your requirements. We will also count on your cooperation to help us deliver on this mandate. Yes, we also need you to ensure that you have the highest-quality paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages