Mathematics, 22.09.2020 16:01 lliaaaa
The bad debt ratio for a financial institution is defined to the dollar value of loans defaulted divided by the total dollar value of all loans made. Suppose that a random sample of 7 Ohio banks is selected and that the bad debt ratios (written as percentages) for these banks are 6%, 8%, 5%, 9%, 7%, 5% and 8%. Banking officials claim that the mean debt ratio for all Midwestern banks is 3.5 percent and the mean bad debt ratio for Ohio banks is higher. Set up the null and alternative hypotheses needed to attempt to provide evidence supporting the claim that the mean bad debt ratio for Ohio banks exceed 3.5 percent. (a) H0: μ ≤ [ Select ] % versus Ha: μ > [ Select ] %. (b) Discuss the meanings of a Type I error and a Type II error in this situation. Type I : Conclude that Ohio's mean debt ratio is [ Select ] 3.5 % when it actually is 3.5%. Type II : Conclude that Ohio's mean debt ratio is [ Select ] 3.5 % when it actually is 3.5%.
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The bad debt ratio for a financial institution is defined to the dollar value of loans defaulted div...
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