MAT 510 University of Brighton Wk 8 Mortgage Approval Time Study Case Presentation

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jfzhrk

Business Finance

MAT 510

University of Brighton

MAT

Description

  1. Case Study 2: Mortgage Approval Time Study

    Read the following case study:A major financial services company wishes to better understand its mortgage approval process. In particular, the company is interested in learning about the effects of credit history (good versus fair), the size of the mortgage (<$500,000 versus >$500,000), and the region of the United States (western versus eastern) on the amount of time it takes to get a mortgage approved. The database of mortgages approved in the last year is accessed, and a random sample of five approved mortgages is selected for each of the eight combinations of the three variables. The data are shown in the table
    Mortgage Approval Time Study
    Credit HistoryMortgage SizeRegionApproval Times (days)Approval Times (days)Approval Times (days)Approval Times (days)Approval Times (days)
    Good<$500,000Western5950646247
    Fair<$500,000Western8158696574
    Good>$500,000Western3852586065
    Fair>$500,000Western146159133143129
    Good<$500,000Eastern2826384121
    Fair<$500,000Eastern4253405064
    Good>$500,000Eastern4931494238
    Fair>$500,000Eastern106115126118138
    First, conduct an analysis using the following steps:
    1. Use the data shown in the table to conduct a design of experiment (DOE) in Microsoft Excel in order determine the nature and magnitude of the effects of the three variables on mortgage approval times. What are the key drivers of this process?
    2. Determine the graphical display tool (e.g., Interaction Effects Chart, Scatter Chart, et cetera) that you would use to present the results of the DOE that you conducted in Question 1. Provide a rationale for your response.
    3. Assess the data sampling method. Our sample contained only five mortgages per combination. Under what circumstances would it have been appropriate to select a larger sample? Is a sample of five mortgages adequate to access the relative magnitudes of the effects of the variables? What sample size would you recommend? What could you learn from a larger sample size? (Hint: Look back at chapter 2, 3, 5, and 6 for discussion of sampling.)
    4. Provide other variable responses that might be of interest to measure and study. (Hint: If you were getting a mortgage or a loan, what are the two most important measures of the process you would have to go through?)
    5. Propose one overall recommendation to the financial services company, based on the DOE, that could help reduce mortgage approval times.
    6. Use Basic Search: Strayer University Online Library to identify at least two quality references to support your discussion. Note: Wikipedia and other websites do not qualify as academic resources.
    Second, create a PPT presentation to communicate the data analysis you completed. Your presentation must follow these formatting requirements:
    • A PPT presentation with at least 10 slides that include the answers to questions 1 through 5.
    • A reference slide which follows APA format. Check with your professor for any additional instructions.
    • Formatting of the slides should be consistent and easy to read.
    • Cover slide containing the title of the assignment, the student's name, the professor's name, the course title, and the date.
    • Note: The cover slides and the reference slides are not included in the required assignment slides length.
    The specific course learning outcome associated with this assignment is:
    • Develop recommendations to improve business processes, using statistical tools and analysis.
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Explanation & Answer

Attached.

POWERPOINT CASE STUDY
Mortgages Approval Times

QUESTION 1
For our case mortgage approval time, the key divers are;
• Loan amount
• Credit rating
• Down payment

The analogy behind these determinants is that;
• Low credit and low down payment slows down the approval process for mortgage
• Massive amount of loans does the same as above
• Proper credit and more significant down payment, as well as small loans, lead to a faster mortgage
approval process.

QUESTION 2
• Considering the nature of the data, I would use scatter chat to represent the DOE.
• This choice is because scatter charts display the values for more than two variables in a
graphical manner.
• It is also easy to interrelate these variables for analysis.

QUESTION 3
• The sample size is significant in research.
• It is the number of pieces of information upon which a survey has been carried out.
• When dealing with sample sizes, larger samples provide more precise results. When looking for
mean and outliers, a large sample size will provide more data that will gi...


Anonymous
Really great stuff, couldn't ask for more.

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