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A bank has recently acquired a new branch and thus has customers in this new territory. They are interested in the default rate in their new territory. They wish to test the hypothesis that the default rate is different from their current customer base. The sample 200 files in area A, their current customers, and find that 20 have defaulted. In area B, the new customers, another sample of 200 files shows 12 have defaulted on their loans. At a 10% level of significance can we accept/reject the null hypothesis H0 : pA = pB against the alternative hypothesis Ha : pA ≠ pB? a. Hull hypothesis CAN NOT be rejected at 10% confidence level. b. Hull hypothesis CAN be rejected at 10% confidence level.

A bank has recently acquired a new branch and thus has customers in this new territory. They are interested in the default rate in their new territory. They wish to test the hypothesis that the default rate is different from their current customer base. The sample 200 files in area A, their current customers, and find that 20 have defaulted. In area B, the new customers, another sample of 200 files shows 12 have defaulted on their loans. At a 10% level of significance can we accept/reject the null hypothesis H0 : pA = pB against the alternative hypothesis Ha : pA ≠ pB? a. Hull hypothesis CAN NOT be rejected at 10% confidence level. b. Hull hypothesis CAN be rejected at 10% confidence level.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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  1. A bank has recently acquired a new branch and thus has customers in this new territory. They are interested in the default rate in their new territory. They wish to test the hypothesis that the default rate is different from their current customer base. The sample 200 files in area A, their current customers, and find that 20 have defaulted. In area B, the new customers, another sample of 200 files shows 12 have defaulted on their loans. At a 10% level of significance can we accept/reject the null hypothesis  H0 : pA = pB against the alternative hypothesis Ha : pA ≠ pB?

     

      a.

    Hull hypothesis CAN NOT be rejected at 10% confidence level.
      b.

    Hull hypothesis CAN be rejected at 10% confidence level.
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