Case Study - Mortgage Approval Time Study

Problem Statement

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)

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