problem will use the subprime data to walk you through calculating a

Don't use plagiarized sources. Get Your Assignment on
problem will use the subprime data to walk you through calculating a
Just from $13/Page
Order Now

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.

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?

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

At, we always aim at 100% customer satisfaction. As such, we never compromise o the quality of our homework services. Our homework helpers ensure that they craft each paper carefully to match the requirements of the instruction form.

Professional Academic Writers

With, every student is guaranteed high-quality, professionally written papers. We ensure that we hire individuals with high academic qualifications who can maintain our quality policy. These writers undergo further training to sharpen their writing skills, making them more competent in writing academic papers.

Affordable Prices

Our company maintains a fair pricing system for all academic writing services to ensure affordability. Our pricing system generates quotations based on the properties of individual papers.

On-Time delivery

My Homework Writers guarantees all students of swift delivery of papers. We understand that time is an essential factor in the academic world. Therefore, we ensure that we deliver the paper on or before the agreed date to give students ample time for reviewing.

100% Originality maintains a zero-plagiarism policy in all papers. As such, My Homework Writers professional academic writers ensure that they use the students’ instructions to deliver plagiarism-free papers. We are very keen on avoiding any chance of similarities with previous papers.

Customer Support 24/7

Our customer support works around the clock to provide students with assistance or guidance at any time of the day. Students can always communicate with us through our live chat system or our email and receive instant responses. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Homework Writing Services

My Homework Writers holds a reputation for being a platform that provides high-quality homework writing services. All you need to do is provide us with all the necessary requirements of the paper and wait for quality results.


Essay Writing Services

At My Homework Writers, we have highly qualified academic gurus who will offer great assistance towards completing your essays. Our homework writing service providers are well-versed with all the aspects of developing high-quality and relevant essays.


Admission and Business Papers

With, we will help you secure a position at your desired institution. Our essay writing services include the crafting of admissions papers. We will still help you climb your career ladder by helping you write the official papers that will help you secure a job. We will guide you on how to write an outstanding portfolio or resume.


Editing and Proofreading has a professional editorial team that will help you organize your paper, paraphrase it, and eliminate any possible mistakes. Also, we will help you check on plagiarism to ensure that your final paper posses quality and originality.


Technical papers

My Homework Writers harbors professional academic writers from diverse academic disciplines. As such, we can develop homework writing services in all academic areas. The simplicity or complexity of the paper does not affect the quality of homework writing services.