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Suppose an analyst models mortgage application rejection rejection (Reject) as a function of the individual applicant income (Income): Reject i = BO + B1 Income i+ɛ i %3D

Suppose an analyst models mortgage application rejection rejection (Reject) as a function of the individual applicant income (Income): Reject i = BO + B1 Income i+ɛ i %3D

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Suppose an analyst models mortgage application rejection rejection (Reject) as a function of the individual applicant income (Income): Reject i = B0 + B1 Income i+ ɛ i %3D Suppose an individual is characterized as belonging to one of the following three groups: Hispanic, Black, or neither. How would you augment this model to test whether the effect of income on mortage rejection differ based on this race/ethnicity categorization?
Transcribed Image Text:Suppose an analyst models mortgage application rejection rejection (Reject) as a function of the individual applicant income (Income): Reject i = B0 + B1 Income i+ ɛ i %3D Suppose an individual is characterized as belonging to one of the following three groups: Hispanic, Black, or neither. How would you augment this model to test whether the effect of income on mortage rejection differ based on this race/ethnicity categorization?
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