Answer:
The sample proportion mean and standard deviation are
With reasonable assumptions about the sample, all the conditions are met.
The probability that over 16% of these clients will not make timely payments is P=0.023.
Step-by-step explanation:
We have a sample of 500 loans, of which a proportion of p=0.13 is expected to not be paid on time.
The sample proportion mean and standard deviation are
The assumptions underlying this model are:
- The sample is randomly selected from the population.
- The sampling distribution of p-hat is approximately normal. There are at least 10 successes and 10 failures in the sample.
- Individual observations are independent of each other.
With reasonable assumptions about the sample, all the conditions are met.
What is the probability that over 16% of these clients will not make timely payments?
The probability that over 16% of these clients will not make timely payments is P=0.023.