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

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Based on past experience, a bank believes that 7% of thepeople who receive loans will not make payments on time. The banktakes a random sample of 200 recently approved loans.
What values of sample proportions of clients who willnot make timely payments would be unusual? Explain.
Construct and interpret a 95% confidence interval forthe true proportion of clients who will not make timelypayments.
Since the U.S. economy has changed, bank officials wouldlike to do a new study to estimate the true proportion of clientswho will not make timely payments. Assume you have no preconceivedidea of what that proportion would be. What sample size is neededif you wish to be 99% confident that your estimate is within 2% ofthe true proportion.Â Â Â
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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a TRADITIONAL METHOD given that possible chances x14 sample sizen200 success rate p xn 007 I sample proportion 007 standard error Sqrt 007093 200 0018 II margin of error Z a2 standard error where Za2 Ztable value level of significance 005 from standard normal table See Answer

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