Use the data in LOANAPPRAW for this exercise- The binary variable to be explained is approve, which is equal to one if amortgage loan to an individual was approved. The key explanatory variable is white, a dummy variable equal to one iftheapplicant was white. The other applicants in the data set are black and HispanicTo test for discrimination in the mortgage loan market, a linear probability model can be used:approve = A, + filwhite + other fizctors.(i) If there is discrimination against minorities, and the appropriate factors have been controlled for, what is the sign of 81?(ii) Regress approve on white and report the results in the usual form- Interpret the coefficient on white. Is it statisticallysignificant? Is it practically large?(iin As controls, add the variables hrat, obrat, loanprc, unem, male, married, dep, sch, cosign, chist, pubrec, mortlatl, mortlatZ, and vr. What happens to the coefficient on white? Is there still evidence of discrimination against nonwhites?(iv) Now, allow the effect of race to interact with the variable measuring other obligations as a percentage of income(obrat). Is the interaction term significant?(v) Using the model from part (iv), what is the effect of being white on the probability of approval when obrat : 32, whichis roughly the mean value in the sample? Obtain a 95% confidence interval for this effect.

This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy.the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.