Strayer MAT510 2020 January Week 8 Case Study Latest

MAT510 Business Statistics

Week 8 Case Study 2

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 History	Mortgage Size	Region	Approval Times (days)	Approval Times (days)	Approval Times (days)	Approval Times (days)	Approval Times (days)
Good	<$500,000	Western	59	50	64	62	47
Fair	<$500,000	Western	81	58	69	65	74
Good	>$500,000	Western	38	52	58	60	65
Fair	>$500,000	Western	146	159	133	143	129
Good	<$500,000	Eastern	28	26	38	41	21
Fair	<$500,000	Eastern	42	53	40	50	64
Good	>$500,000	Eastern	49	31	49	42	38
Fair	>$500,000	Eastern	106	115	126	118	138

 

First, conduct an analysis using the following steps:

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?

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.

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.)

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?)

Propose one overall recommendation to the financial services company, based on the DOE, that could help reduce mortgage approval times.

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.