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The recent default rate on all student loans is 6.2 percent. In a recent random sample...

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Question

Basic Math

The recent default rate on all student loans is 6.2 percent. Ina recent random sample of 314 loans at private universities, therewere 8 defaults.

Does this sample show sufficient evidence that the privateuniversity loan default rate is below the rate for alluniversities, using a left-tailed test at α = .010?

(a-1)Choose the appropriate hypothesis.
a.H0: ππ≥ .062; H1: ππ < .062. AcceptH0 if z < –2.326
b.H0: ππ≥ .062; H1: ππ < .062. RejectH0 if z < –2.326
a
b
(a-2)

Calculate the z-score for the sample data using aleft-tailed test at α = .01. (Anegative value should be indicated by a minussign. Round your answer to 3 decimal places.)

  

  zcalc  
(a-3)Should the null hypothesis be rejected?
No
Yes
(b)

Calculate the p-value. (Round your answer to 4decimal places.)

  

  p-value  
(c)The assumption of normality is justified.
Yes
No

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Answer & Explanation Solved by verified expert
4.0 Ratings (485 Votes)
SolutionGivenn 314x 8 0010Let be thesample proportion and be the populationproportion x 8314 00255a 1 For left    See Answer
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