QUESTION 2 [CLO2, 20 MARKS] A bank manager wants to know whether households who default on bank loan payment has differe

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Question 2 Clo2 20 Marks A Bank Manager Wants To Know Whether Households Who Default On Bank Loan Payment Has Differe 1 (48.37 KiB) Viewed 10 times

QUESTION 2 [CLO2, 20 MARKS] A bank manager wants to know whether households who default on bank loan payment has different average income as compared to households who do not default. A study has been conducted based on existing loan borrowers and the results are presented below. Independent Samples Test Levene's Test for Equality of Variances Equal variances not assumed F Sig. M t-test for Equality of Means 95% Confidence Interval of the Difference Sig. (2- Mean Std. Error df tailed) Difference Difference Lower Upper Household Equal income in variances 202.653 1.880 698 061 5.94162 3.16088-26435 12.14760 thousands assumed 1.686 267.520 093 5.94162 3.52466 99797 12.88122 Answer the following questions based on the situation and results as shown above: (a) Write the null and alternative hypotheses? [3 marks] (b) What is the purpose of Levene's test for Equality of Variances? [2 marks] (c) Interpret the Levene's test result, at 5% significance level. [5 marks] (d) Interpret the t-test, at 5% significance level. [5 marks]