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A lending institution supplied the following data on loan approvals by four loan officers. Use α = .05 and test to determine whether the loan approval decision is associated with the loan officer reviewing the loan application.
Loan Approval Decision
Loan Officer Approved Rejected
Miller 24 16
McMahon 17 13
Lee 35 15
Sanchez 11 9

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Answer:

As chi^2 < 7.815, and P > 0.05, we do not reject null hypothesis.

         

Thus, there is no significant evidence that the loan approval decision is not independent of the loan officer reviewing the loan application.

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