(7 points) This question refers to the Federal Reserve Board…

(7 points) This question refers to the Federal Reserve Board Finance and Economics Discussion Series Working Paper #2022-067 “How much does racial bias affect mortgage lending? Evidence from human and algorithmic credit decisions” by Neil Bhutta, Aurel Hizmo, and Daniel Ringo. Assume that I have not been paying attention in class and that you have to teach it to me. (4 points) Teach me how they conducted their test Teach me the approach used by the authors to measure racial bias in mortgage lending. What data did they use and why what factors did they control for and how, and summarize their results? (2 points) Offer two critiques of their methodology, What estimate is affected and why What estimate is affected and why (1 point) What is your overall opinion of their work? Explain briefly.