Question

In early 2007 the Mortgage Lenders Association reported that homeowners were defaulting on their adjustable-rate mortgages in record numbers. The foreclosure rate for that particular year was 1.45%. To see if there has been any change in the foreclosure rate, the association plans to sample 237 homeowners to see if they are in danger of defaulting on their loan. Describe the sampling distribution of the sample proportion of homeowners with adjustable-rate mortgages who are in danger of defaulting on their loan. Round any calculated value to four decimal places. shape: The sampling distribution of the sample proportion(is or is not??) normally distributed? Checks: np = ___? and n(1 - p) = ___? mean: = ___? standard deviation: ? ˆ p ? p ^ = ___? If the sample size were to increase to 1281, which parts of the description of the sampling distribution would change? Select all that are appropriate. 1.)Standard deviation 2.)Shape 3.)Mean

Answer 1