The mortgage department of a large bank is interested in the nature of loans of first-time borrowers. This information will be used to tailor their marketing strategy. They believe that the probability that first-time borrowers take out smaller loans than other borrowers is 0.77. They perform a hypothesis test to determine if the probability is the same or different from 0.77. They sample 118 first-time borrowers and find 92 of these loans are smaller than the other borrowers. What is the test statistic to test
The mortgage department of a large bank is interested in the nature of loans of first-time borrowers. This information will be used to tailor their marketing strategy. They believe that the probability that first-time borrowers take out smaller loans than other borrowers is 0.77. They perform a hypothesis test to determine if the probability is the same or different from 0.77. They sample 118 first-time borrowers and find 92 of these loans are smaller than the other borrowers. What is the test statistic to test
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 4ECP: Show that the probability of drawing a club at random from a standard deck of 52 playing cards is...
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The mortgage department of a large bank is interested in the nature of loans of first-time borrowers. This information will be used to tailor their marketing strategy. They believe that the probability that first-time borrowers take out smaller loans than other borrowers is 0.77. They perform a hypothesis test to determine if the probability is the same or different from 0.77. They sample 118 first-time borrowers and find 92 of these loans are smaller than the other borrowers. What is the test statistic to test the null hypothesis H0: p = 0.77 against the alternative hypothesis Ha: p ≠ 0.77?
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