Use the data in loanapp for this exercise. the binary variable to be explained is approve, which is equal to one if a mortgage loan to an individual was approved. the key explanatory variable is white, a dummy variable equal to one if the applicant was white. the other applicants in the data set are black and hispanic. to test for discrimination in the mortgage loan market, a linear probability model can be used:

Draw a flowchart for a process of interest to you, such as a quick oil-change service, a factory process you might have worked in, ordering a pizza, renting a car or truck, buying products on the internet, or applying for an automobile loan. identify the points where something (people, information) waits for service or is held in work-in-process inventory, the estimated time to accomplish each activity in the process, and the total flow time. evaluate how well the process worked and what might be done to improve it.