Solution for 2.3.

Household Income and Loan Amount

HYPOTHESIS TESTING:  

Variables:  Household Income and Loan Amount

Variables Spearman's rho Strength of Correlation /

Decision
Household Income and Correlation Coefficient .745**
Strong Positive correlation
Loan Amount Sig. (2-tailed) <.001 Reject H o

N 850
**. Correlation is significant at the .01 (99%) level (2-tailed).

Presentation of Results
The results of the Spearman’s rho test showed that p <.001 which indicates that there is a
significant relationship between the household income and loan amount of the bank borrowers of
US Commercial Bank with 99% confidence level. The correlation coefficient (r) = .745 which
indicates strong positive correlation between the household income and loan amount of
the borrowers.

Solution for 2.4. Household Income and Age

HYPOTHESIS TESTING:  

Variables:  Household Income and Age

Variables Spearman's rho Strength of Correlation /

Decision
Household Income and Correlation Coefficient .574**
Moderate Positive correlation
Age Sig. (2-tailed) <.001 Reject H o

N 850
**. Correlation is significant at the .01 (99%) level (2-tailed).

Presentation of Results
The results of the Spearman’s rho test showed that p <.001 which indicates that there is a
significant relationship between the household income and age of the bank borrowers of US
Commercial Bank with 99% confidence level. The correlation coefficient (r)= .547 indicates
moderate positive correlation between the household income and age of the borrowers.
Solution for 2.5. Debt to Income Ratio and Loan Amount

HYPOTHESIS TESTING:  

Variables:  Debt to Income Ratio and Loan Amount

Variables Spearman's rho Strength of Correlation /

Decision
Debt to Income Ratio and Correlation Coefficient .421**
Moderate Positive correlation
Loan Amount Sig. (2-tailed) <.001 Reject H o

N 850
**. Correlation is significant at the .01 (99%) level (2-tailed).

Presentation of Results
The results of the Spearman’s rho test showed that p <.001 which indicates that there is a
significant relationship between debt to income ratio to loan amount of the bank borrowers of US
Commercial Bank with 99% confidence level. The
correlation coefficient (r)= .421 indicates moderate positive correlation between the debt income
ratio and loan amount borrowers.

Solution for 2.6. Debt to Income Ratio and Age

HYPOTHESIS TESTING:  

Variables:  Debt to Income Ratio and Age

Variables Spearman's rho Strength of Correlation /

Decision
Debt to Income Ratio and Correlation Coefficient .000 No correlation
Age Sig. (2-tailed) .981 Failed to Reject Ho

N 850

Presentation of Results
The results of the Spearman’s rho test showed that p = .981which is greater than 0.05
level of significance, thus the null hypothesis is failed to reject.
Solution for 2.7. Loan Amount and Credit Card Debt

HYPOTHESIS TESTING:  

Variables:  Loan Amount and Credit Card Debt

Variables Spearman's rho Strength of Correlation /

Decision
Loan Amount and Credit Correlation Coefficient .906**
Strong Positive correlation
Card Debt Sig. (2-tailed) <.001 Reject H o

N 850
**. Correlation is significant at the .01 (99%) level (2-tailed).

Presentation of Results
The results of the Spearman’s rho test showed that p <.001 which indicates that there is a
significant relationship between the loan amount and credit card debt of the bank borrowers of
US Commercial Bank with 99% confidence level. The
correlation coefficient (r)= .906 which indicates strong positive correlation between the loan
amount and credit debt of the borrowers.