(a) From the sample of 175 branches summarized above: (i) What proportion of branches are profitable? (ii) What proportion of branches from an urban location are profitable? (iii) What proportion of branches from a rural location are profitable? (b) Assuming the conditions for inference are met, does the data provide convincing statistical evidence that profitability and location type are independent for the bank at a 5 percent level of significance? Complete the appropriate inference procedure to support your answer.
A large national bank determines if each of its branches is profitable or not profitable. Additionally, the location of each branch is classified as urban, suburban, or rural. A summary of the profitability and location type of a random sample of 175 of the bank’s branches is shown in the table.
(a) From the sample of 175 branches summarized above:
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(i) What proportion of branches are profitable?
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(ii) What proportion of branches from an urban location are profitable?
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(iii) What proportion of branches from a rural location are profitable?
(b) Assuming the conditions for inference are met, does the data provide convincing statistical evidence that profitability and location type are independent for the bank at a 5 percent level of significance? Complete the appropriate inference procedure to support your answer.
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