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Based on past experience, a bank believes that 7% of the people who receive loans will...

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Statistics

  1. Based on past experience, a bank believes that 7% of the peoplewho receive loans will not make payments on time. The bank takes arandom sample of 200 recently approved loans.
    1. Find the quartiles of the sample proportions of clients whowill not make timely payments.
    2. What values of sample proportions of clients who will not maketimely payments would be unusual? Explain.
    3. Construct and interpret a 95% confidence interval for the trueproportion of clients who will not make timely payments.
    4. Since the U.S. economy has changed, bank officials would liketo do a new study to estimate the true proportion of clients whowill not make timely payments. Assume you have no preconceived ideaof what that proportion would be. What sample size is needed if youwish to be 99% confident that your estimate is within 2% of thetrue proportion.   
    5. Based on previous research, you assume the proportion ofclients who will not make timely payments is 7%. What sample sizeis needed if you wish to be 99% confident that your estimate iswithin 2% of the true proportion.

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proportion of the people who receive loans will not makepayments on time p007total number of    See Answer
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