Solutions Statistics

Solution) A mortgage department of a large bank is studying its recent loans. Of particular interest is how su

Question: A mortgage department of a large bank is studying its recent loans. Of particular interest is how such factors as the value of the home (in thousands of dollars), education level of the head of the household, age of the head of the household, current monthly mortgage payment (in dollars), and gender of the head of the household (male = 1, female = 0) relate to the family income. Are these variables effective predictors of the income of the household A random sample of 25 recent loans is obtained.

Income	Value	Years of		Mortgage
($ thousands)	($ thousands)	Education	Age	Payment	Gender
	$190	14	53	$230	1
$40.30	121	15	49	370	1
39.6	161	14	44	397	1
40.8	161	14	39	181	1
40.3	179	14	53	378	0
40	99	14	46	304	0
38.1	114	15	42	285	1
40.4	202	14	49	551	0
40.7	184	13	37	370	0
40.8	90	14	43	135	0
37.1	181	14	48	332	1
39.9	143	15	54	217	1
40.4	132	14	44	490	0
38	127	14	37	220	0
39	153	14	50	270	1
40.6	145	14	50	279	1
40.3	174	15	52	329	1
40.1	177	15	47	274	0
41.7	188	15	49	433	1
40.1	153	15	53	333	1
40.6	150	16	58	148	0
40.4	173	13	42	390	1
40.9	163	14	46	142	1
40.1	150	15	50	343	0
38.5	139	14	45	373	0