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Activity-7-Tables Answer Updated
Activity-7-Tables Answer Updated
Activity-7-Tables Answer Updated
HYPOTHESIS TESTING:
N 850
**. Correlation is significant at the .01 (99%) level (2-tailed).
Presentation of Results
The results of the Spearman’s rho test showed that p <.001 which indicates that there is a
significant relationship between the household income and loan amount of the bank borrowers of
US Commercial Bank with 99% confidence level. The correlation coefficient (r) = .745 which
indicates strong positive correlation between the household income and loan amount of
the borrowers.
HYPOTHESIS TESTING:
N 850
**. Correlation is significant at the .01 (99%) level (2-tailed).
Presentation of Results
The results of the Spearman’s rho test showed that p <.001 which indicates that there is a
significant relationship between the household income and age of the bank borrowers of US
Commercial Bank with 99% confidence level. The correlation coefficient (r)= .547 indicates
moderate positive correlation between the household income and age of the borrowers.
Solution for 2.5. Debt to Income Ratio and Loan Amount
HYPOTHESIS TESTING:
N 850
**. Correlation is significant at the .01 (99%) level (2-tailed).
Presentation of Results
The results of the Spearman’s rho test showed that p <.001 which indicates that there is a
significant relationship between debt to income ratio to loan amount of the bank borrowers of US
Commercial Bank with 99% confidence level. The
correlation coefficient (r)= .421 indicates moderate positive correlation between the debt income
ratio and loan amount borrowers.
HYPOTHESIS TESTING:
N 850
Presentation of Results
The results of the Spearman’s rho test showed that p = .981which is greater than 0.05
level of significance, thus the null hypothesis is failed to reject.
Solution for 2.7. Loan Amount and Credit Card Debt
HYPOTHESIS TESTING:
N 850
**. Correlation is significant at the .01 (99%) level (2-tailed).
Presentation of Results
The results of the Spearman’s rho test showed that p <.001 which indicates that there is a
significant relationship between the loan amount and credit card debt of the bank borrowers of
US Commercial Bank with 99% confidence level. The
correlation coefficient (r)= .906 which indicates strong positive correlation between the loan
amount and credit debt of the borrowers.