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%.

Answers

Answer 1

Answer:

Step-by-step explanation:

From the information given:

Consider X to be the random variable denoting the bad debt ratios for Ohio Bank.

Then, [tex]X \sim N ( \mu, \sigma ^2)[/tex]

Thus the null hypothesis and the alternative can be computed as:

Null hypothesis:

[tex]H_o : \mu \leq3.5\%[/tex]

Alternative hypothesis

[tex]H_1 : \mu > 3.5\%[/tex]

The type I and type II error is as follows:

Type I:

The mean bad debt ratio is > 3.5% when it is not

Type II:

The mean bad debt ratio is ≤ 3.5% when it is not.

The test statistics can be calculated by using the formula:

[tex]t = \dfrac{\overline x - \mu}{\dfrac{\sigma}{\sqrt{n}}}[/tex]

where;

sample size n = 7

mean = 6+8+5+9+7+5+8 = 48

sample mean [tex]\overline x =\dfrac{48}{7}[/tex]

[tex]\overline x[/tex] = 6.86

sample standard deviation is :

[tex]s = \sqrt{\dfrac{\sum( x -\overline x)^2}{n-1}}[/tex]

[tex]s = \sqrt{\dfrac{( 6 -6.86)^2+( 8-6.86)^2+ ( 5 -6.86)^2 + ...+( 7 -6.86)^2+ ( 5 -6.86)^2+( 8 -6.86)^2 }{7-1}}[/tex]

s = 1.573

population  mean [tex]\mu = 3.5[/tex]

Therefore, the test statistics is :

[tex]t = \dfrac{\overline x - \mu}{\dfrac{\sigma}{\sqrt{n}}}[/tex]

[tex]t = \dfrac{6.86- 3.5}{\dfrac{1.573}{\sqrt{7}}}[/tex]

[tex]t = \dfrac{3.36}{\dfrac{1.573}{2.65}}[/tex]

[tex]t = \dfrac{3.36\times {2.65}}{{1.573}}[/tex]

t = 5.660

At significance level of 0.01

[tex]t_{0.01} = 3.707[/tex]  

P - value = P(T > 5.66)

P - value = 1 - (T < 5.66)

P - value = 1 - 0.9993

P-value = 0.0007

Therefore, since [tex]t_{0.01} < t[/tex] , we reject the null hypothesis and conclude that the claim that the mean bad debt ratio for Ohio banks is higher than the mean for all financial institutions is true.


Related Questions

what is a positive and a negative number between 1 and -1 ? ​

Answers

Answer:

The answer is 0

Step-by-step explanation:

It's between -1 and 1 and it's not positive only and it's not negative only

At 5:00 a.m., the temperature outside was 1°F below zero. By noon, it rose by 12°F. At 7:00 p.m., the temperature dropped by 6°F. What was the evening temperature?

Answers

Answer:

5 Fahrenheit

Step-by-step explanation:

In the morning, it was 1 below zero. Subtract.

0 - 1 = -1.

Then, it went up 12 degrees.

-1 + 12 = -11.

In the evening, it went down -6.

11 - 6 = 5.

The answer is 5.

What are the chances that a coin toss will result in heads? (vs. tails)?

Answers

Answer:

50/50

Step-by-step explanation:

there are only two sides so they both get 50 percent

Answer: 1 in 2 chance

Step-by-step explanation: because there are only 2 sides and can only land on one side

f(-1/2)=1/2x +3/2 what is the answer to this?

Answers

Answer:

5/4, just sub in x

Step-by-step explanation:

Find the slope of the line passing through the points P (2,5) and Q (8,2)

Answers

The slope in this case would be -3/6

5g + 18-7g + 4g = 8

Answers

Answer:

Step-by-step explanation:

9g - 7g + 18 = 8

2g + 18 = 8

2g = -10

g = -5

Can somebody plsssss help me I’m really bad at math

Answers

Answer:

Hey there!

a.

50=28.10+0.15m

Subtract 28.10

21.90=0.15m

Divide by 0.15

m=146

Jacob can send 146 messages.

b.

50=36.50+0.10m

Subtract 36.50

13.5=0.10m

Divide by 0.10

m=135

Roberto can send 135 messages.

Let me know  if this helps :)

Find the general solution of the following equation: y'(t) = 3y -5

Answers

Answer:

The general solution of the equation is y = [tex]\frac{A}{3}e^{3t}[/tex] + 5

Step-by-step explanation:

Since the differential equation is given as y'(t) = 3y -5

The differential equation is re-written as

dy/dt = 3y - 5

separating the variables, we have

dy/(3y - 5) = dt

dy/(3y - 5) = dt

integrating both sides, we have

∫dy/(3y - 5) = ∫dt

∫3dy/[3(3y - 5)] = ∫dt

(1/3)∫3dy/(3y - 5) = ∫dt

(1/3)㏑(3y - 5) = t + C

㏑(3y - 5) = 3t + 3C

taking exponents of both sides, we have

exp[㏑(3y - 5)] = exp(3t + 3C)

3y - 5 = [tex]e^{3t}e^{3C}[/tex]        

3y - 5 = [tex]Ae^{3t}[/tex]                [tex]A = e^{3C}[/tex]

3y = [tex]Ae^{3t}[/tex] + 5    

dividing through by 3, we have

y = [tex]\frac{A}{3}e^{3t}[/tex] + 5

So, the general solution of the equation is y = [tex]\frac{A}{3}e^{3t}[/tex] + 5

The point (2,6) lies on the graph of the equation y = kx^2 - 3x. Find the value of K.

Answers

Answer:

k=3

Step-by-step explanation:

just did it

which algebraic experssion is a difference with two term

Answers

Answer:

ok

Step-by-step explanation:

" a difference " means subtract

5y - 7......u have 2 terms (5y and 7)...and it is the difference of 2 terms.

so ur answer is : 5y - 7

pls mark me as brilliant

Solve the equation. −2=67p

Answers

Answer:

p = -2/67

Step-by-step explanation:

We divide 67 on both sides.

-2 / 67 = -2/67

67p / 67 = p

We got p = -2/67

Hope this helps.


Help me please ..............................................................

Answers

Answer:

Coplanar

Step-by-step explanation:

964,103 rounded to the nearest ten thousand

Answers

960,000! Hope this helped! :D

11(15g-13)=-6 help please

Answers

Answer:

g = 0.83

Step-by-step explanation:

11(15g-13) =-6

165g - 143 = -6

165g = 137

165      165

g = 0.83

The solution of the given equation 11(15g-13) = -6 is g = 0.83

What is an equation?

In mathematics, an equation is a formula that expresses the equality of two expressions by connecting them with the equal sign = .

Now the given equation is,

11(15g-13) = -6

To solve the above equation following steps are taken,

Divide both the side of the equation by 11

11(15g-13)/11 = -6/11

Solving them we get,

15g - 13 = -6/11

Adding 13 both the sides,

15g - 13 + 13 = -6/11 + 13

So we obtain,
15g  = -6/11 + 13

Solving the numbers right hand side,we get

15g = 137/11

Dividing both the sides by 15 we get,

g = 137/165

or, g = 0.83

Hence,The solution of the given equation 11(15g-13) = -6 is g = 0.83

Learn more about equations :

https://brainly.com/question/7545504

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Help with algebra homework please...with work shown to explain

Answers

Answer:

C: -3/7

Step-by-step explanation:

Put an extended line over each direct point you see and then count the graph it takes to reach the nearest point.

Here is a picture to better explain it!

A: if i’m not correct, it looks like ur looking for slope. if so, c

explanation: slope is as follows: rise/run.
this slope is negative, because it is going down [think abt it like this, if you place a skier on this line, will he ski up or down?].

to find slope you can use the equation y2-y1/ x2-x1 = slope (m)

select 2 pairs of points. i chose (-4,-1) and ( 3,-4). because the point form is (x,y) my x1 = -4, y1 = -1 and x2 = 3, y2= -4.

let’s plug them into the equation above: -4 - (-1) / 3- (-4) = m

solve: -4 + 1/ 3+4 = -3/7

m= -3/7 or C

Please help!! I don't understand this!?!?!?

Answers

Answer:

Understgand what?

Step-by-step explanation:

Answer:

whats your question?

Step-by-step explanation:

Large bags hold 14 apples. When a fourth grade class went to apple picking, they filled 9 large bags. How many apples did they pick?

Answers

14x9=90+36=126. They picked 126 apples.

Answer:

They picked 126 apples

Step-by-step explanation:

Because 1 large bag holds 14 apples, and 9 large bags were filled, you would need to multiply 14 by 9. 14 multiplied by 9 equals 126

Help just one question can you show steps

Answers

this is the answer hope this will help u

y = mx + c
5.
Use the grid below to answer these questions.
a) Draw and label the graph of y = 3x + 1.
15
[
10
5
b) Draw a line parallel to y = 3x + 1 and
passing through the point (0, -3).
o
2
3
4
5
c) Write down the equation of this line.​

Answers

Answer:

Step-by-step explanation:

graph cannot be drawed

Type the integer that makes the following multiplication sentence true: –3 × = 9

Answers

Answer:-3

-3

Step-by-step explanation:

Your car can drive 300 miles on a tank of 15 gallons. How far can it drive on 40
gallons?

Answers

Answer: 800

20x40=800

The car travels 800 miles in 40 gallons if the car can drive 300 miles on a tank of 15 gallons.

What is a fraction?

Fraction number consists of two parts, one is the top of the fraction number which is called the numerator and the second is the bottom of the fraction number which is called the denominator.

It is given that:

Distance is a numerical representation of the distance between two items or locations. Distance refers to a physical length or an approximation based on other physics or common usage considerations.

Your car can drive 300 miles on a tank of 15 gallons

300 miles → 15 gallons

Let x be the number of miles or distance a car travel in 40 gallons

x → 40 gallons

300/x = 15/40

x = (300×40)/15

x = 800 miles

Thus, the car travels 800 miles in 40 gallons if the car can drive 300 miles on a tank of 15 gallons.

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what is the answer for -8=-16+n

Answers

Answer:

n=8

Step-by-step explanation:

[tex]-8=-16+n\\\\-8+16=-16+16+n\\\\8=0+n\\\\n=8[/tex]

Answer:

Step-by-step explanation:

-8=-16+n            

-8(+16)=-16(+16)+n    get "n" by itself by adding 16 to both sides.

      negative eight plus sixteen is positive eight. on the right side the sixteens cancel eachother out, so you are left with just "n".  

Therefore...,

8=n

Find the midpoint of the segment joining X(5,6) and Y(9,2).

Answers

Answer:

(7,4)

Step-by-step explanation:

The midpoint formula is:

[tex]M=(\frac{x_1+x_1}{2},\frac{y_1+y_2}{2})[/tex]

Let (5,6) be x₁ and y₁ and let's let (9,2) be x₂ and y₂. Thus, the midpoint is:

[tex]M=(\frac{5+9}{2},\frac{6+2}{2})[/tex]

Add:

[tex]M=(\frac{14}{2},\frac{8}{2})[/tex]

Divide by 2:

[tex]M=(7,4)[/tex]

So, our midpoint is (7,4).

And we're done!

Evaluate 3^2 + (6-2)x4-6/3

Answers

Answer:

23

Step-by-step explanation:

9+4x4-2

9+16-2

9+16-2

23

Answer:

23

Step-by-step explanation:

3 ^ 2 = 9

6 - 2 = 4

4 * 4 = 16

16 + 9 = 25

6/3/ = 2

25 - 2 = 23

Help me please!!! :(

Answers

Answer:

the greatest common factor is 5^2 * 7^3

(I think!!!)

Franklin has a five-dollar bill and d dimes in his money jar. Which expression could represent the value, in dollars, in franklins money jar?

Answers

Answer:

5+0.10d

Step-by-step explanation:

A five dollar bill is worth $5 and a dime is worth 10 cents, or a tenth of a dollar. To find the value of the money take the sum of the value of the bill and the number of dimes (d) times the value of each dime. You will get $5+0.10d.

If you would like FREE tutoring in algebra or another subject, check out www.growthinyouth.org.

what is the value of a
Help please

Answers

When the base and the height of a triangle are the same. the hypotenuse is that number times sqrt2.

B and C are 7, so a would also be 7

Write an equation in slope-intercept form for the line described. Slope 9/2, passes through (0,-13/2)

Answers

Use slope-intercept equation form: [tex]y=mx+b[/tex]

We know that the slope is 9/2

[tex]y=\frac{9}{2}[/tex]

[tex]y=\frac{9}{2}x+b[/tex]

To solve for b, we can plug in the point given, since it's on the line.

[tex]-\frac{13}{2}=\frac{9}{2}(0)+b[/tex]

[tex]b=-\frac{13}{2}[/tex]

So the equation is: [tex]y=\frac{9}{2}-\frac{13}{2}[/tex]

頑張って!

I need help ASAP!! 1+(x-4)=-(3x+6)+1

Answers

Answer: x= -2

Step-by-step explanation: 1.) use PEMDAS

2.) distribute the 1 and -1 to (x+4) and (3x+6) --> 1+x+4 = -3x-6+1

3.) Put common terms on the same side (so x's together and the numbers together) so you will add 3 to the right side and add 3x to the left side

4.) that will get you 4x = -8 so then you will divide 4 to both sides to get x by itself

5.) Answer: x=-2

5.)

What is the sum of 637,391+372,088

Answers

Answer is:

1009479

Hopes it Helped !!

the result of this problem is 1009.479

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