This is a bar chart of the number of defaults on mortgages in a collection of loans during the credit crisis that began in 2007€“2008. The bar chart identifies the type of income documentation used when the mortgage was obtained. Before we test whether loans with full documentation are riskier than the others, what else do we need to know?

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Rapid Documentation No Income Verification Limited Income Verification Full Documentation 200 400 600 1000 1200 800