How low can you go? : an optimal sampling strategy for Fair Lending exams / Jason Dietrich.

Format:

Book

Government document

Author/Creator:

Dietrich, Jason Lynn

Contributor:

United States. Office of the Comptroller of the Currency

Series:

Economic and policy analysis working paper (2000) ; 2001-3.

Economic and policy analysis working paper ; 2001-3

Language:

English

Subjects (All):

Bank loans--Mathematical models.

Bank loans.

Bank examination--United States.

Bank examination.

Monte Carlo method.

Monte Carlo Method.

United States.

Medical Subjects:

Monte Carlo Method.

Physical Description:

1 online resource (27 pages)

Place of Publication:

[Washington, D.C.] : U.S. Office of the Comptroller of the Currency, [2001]

Summary:

"This study uses Monte Carlo simulation to examine the impact of nine sampling strategies on the finite sample performance of the maximum likelihood logit estimator. Empirical researchers face a tradeoff between the lower resource costs associated with smaller samples and the increased confidence in the results gained from larger samples. Choice of sampling strategy is one tool researchers can use to reduce costs yet still attain desired confidence levels. The nine sampling strategies examined in this study include simple random sampling and eight variations of stratified random sampling. Bias, mean-square-error, percentage of models that are feasibly estimated, and percentage of simulated estimates that differ statistically from the true population parameters are used as measures of finite sample performance. The results show stratified random sampling by action (loan approval/denial) and race of the applicant, with balanced strata sizes and a bias correction for choice-based sampling, outperforms each of the other sampling strategies with respect to the four performance measures. These findings, taken together with supporting evidence presented in Scheuren and Sangha (1998) and Giles and Courchane (2000) make a strong argument for implementing such a sampling strategy in future fair lending exams"--Office of the Comptroller of the Currency web site

Notes:

Title from title screen (viewed January 30, 2004).

"August 2001."

Includes bibliographical references.

Electronic reproduction. [Place of publication not identified]: HathiTrust Digital Library. 2023.

Other Format:

Dietrich, Jason. How low can you go?

OCLC:

54357063

Access Restriction:

Use copy Restrictions unspecified