1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Andreas93 [3]
3 years ago
9

The bad debt ratio for a financial institution is defined to be the dollar values of loans defaulted divided by the total dollar

values of all loans made. A random sample of seven Ohio banks is selected.The bad debt ratios for these banks are 7, 4, 6, 7, 5, 4, and 9%.The mean bad debt ratio for all federally insured banks is 3.5%.Federal banking officials claim that the mean bad debt ratio for Ohio banks is higher than the mean for all federally insured banks.(a) Set up the null and alternative hypotheses that should be used to justify this claim statistically. Assuming bad debt ratios for Ohio banks are normally distributed.
(b) Use the sample results give above to test the hypotheses you set up in part (a) with a α = .01. Interpret the outcome of the test.
Mathematics
1 answer:
Nimfa-mama [501]3 years ago
7 0

Answer:

(a) NULL HYPOTHESIS, H_0 : \mu \leq  3.5%

    ALTERNATE HYPOTHESIS, H_1 : \mu > 3.5%

(b) We conclude that the the mean bad debt ratio for Ohio banks is higher than the mean for all federally insured banks.

Step-by-step explanation:

We are given that a random sample of seven Ohio banks is selected.The bad debt ratios for these banks are 7, 4, 6, 7, 5, 4, and 9%.The mean bad debt ratio for all federally insured banks is 3.5%.

We have to test the claim of Federal banking officials that the mean bad debt ratio for Ohio banks is higher than the mean for all federally insured banks.

(a) Let, NULL HYPOTHESIS, H_0 : \mu \leq  3.5% {means that the the mean bad debt ratio for Ohio banks is less than or equal to the mean for all federally insured banks}

ALTERNATE HYPOTHESIS, H_1 : \mu > 3.5% {means that the the mean bad debt ratio for Ohio banks is higher than the mean for all federally insured banks}

The test statistics that will be used here is One-sample t-test;

                T.S. = \frac{\bar X - \mu}{\frac{s}{\sqrt{n} } } ~ t_n_-_1

where,  \bar X = sample mean debt ratio of Ohio banks = 6%

             s = sample standard deviation = \sqrt{\frac{\sum (X-\bar X)^{2} }{n-1} } = 1.83%

             n = sample of banks = 7

So, test statistics = \frac{6-3.5}{\frac{1.83}{\sqrt{7} } }  ~ t_6

                             = 3.614

(b) Now, at 1% significance level t table gives critical value of 3.143. Since our test statistics is more than the critical value of t so we have sufficient evidence to reject null hypothesis as it will fall in the rejection region.

Therefore, we conclude that the the mean bad debt ratio for Ohio banks is higher than the mean for all federally insured banks.

Hence, Federal banking officials claim was correct.

You might be interested in
Solve this equation for x 0.95 = log x
Lelechka [254]

Answer:

8.91

Step-by-step explanation:

Given:  0.95 = log x,

we can conclude that:

    0.95            log x

10             =  10

                                                          0.95

which in turn is equivalent to x = 10            whose value is  8.91

5 0
3 years ago
Please help me with this geometry question. x and pr needed ao basically like this x=(answer), PR=(answer). Thank you
Dennis_Churaev [7]

Answer:

x = -1, PR = 38.

Step-by-step explanation:

As Q is the midpoint of PR

PQ = QR

6x + 25 = 16 - 3x

9x = -9

x = -1.

PR

= 6x + 25 + 16 - 3x

= 6(-1) + 25 + 16 - 3(-1)

= -6 + 25 + 16 + 3

= 38.

7 0
2 years ago
15x (1/3+1/5)<br> I need help with this one also?
love history [14]

Answer:

8

Step-by-step explanation:

15 x (1/3+1/5)  make common denominators and add

15 x (5/15+3/15)  add fractions

15/1 x (8/15)  15 and 15 cancel out and become 1

1/1 x 8/1

1 x 8

8

3 0
3 years ago
Read 2 more answers
Lisa is 800 meters from the base of the mountain. From where she stands, she measures the angle of elevation to the peak of the
Llana [10]

Answer:

Lisa is  2581 m    from the peak of the mountain when she is standing at its base.

Step-by-step explanation:

7 0
3 years ago
Write a sentence contrasting the political development of the North versus the South in the years leading up to the Civil War.
Oxana [17]

Answer:

The opposite side, lead by Thomas Jefferson, belived

people should have political power, favored strong state goverment.              Step-by-step explanation:

6 0
2 years ago
Other questions:
  • In a circle, a central angle whose measure is pi/2 radians intercepts an arc whose length is 3pi/2 centimeters. How many centime
    7·1 answer
  • Which of the following values is farthest to the left on the number line? (0.1)2 0.02
    8·2 answers
  • What proportions have a solution of x = -2
    10·1 answer
  • Mrs. Epps buys 500 bags of balloons for the high school prom for $250 what is the cost per bag A($.25 B($.50 C($.75 D($1.00
    15·1 answer
  • If the measure of angle 5 equals 102 degrees, then the measure of angle 8 equals what?
    11·1 answer
  • Given the function, f(x)=|x+1|+2, what is the transformation
    7·1 answer
  • A surplus is
    11·2 answers
  • Solve for X<br> 6(x+5 = 5x+3
    12·1 answer
  • Pete bought a 5-ounce box of cereal for $5.45. What was the cost per ounce?
    13·2 answers
  • ANYONE SMART AT MATH NEED HELP ON THIS
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!