Question
In: Statistics and Probability
The mortgage department of a large bank is interested in the nature of loans of first-time...
The mortgage department of a large bank is interested in the nature of loans of first-time borrowers. This information will be used to tailor their marketing strategy. They believe that the probability that the first-time borrowers take out smaller loans than other borrowers is 0.52. They perform a hypothesis test to determine if the probability is the same or different from 0.52. They sample 118 first-time borrowers and find 82 of these loans are smaller that the other borrowers. What is the test statistics to test the null hypothesis H0: p = 0.52 against the alternative hypothesis Ha: p ≠ 0.52?
Solutions
orchestra answered 1 year agoRelated Solutions
The loan department of a bank offers 3 different types of loans: signature, mortgage, and commercial....
The loan department of a bank offers 3 different types of loans:
signature, mortgage, and commercial.
The following cost and activity estimates are available for the
upcoming year:
Activity Activity Cost Activity Driver
Answering customer questions $ 35,000 customer inquiries
Filling out loan application 60,000
pages
Loan application processing 30,000 data
entry hours
Loan analysis & evaluation 100,000 loan
dollars
Preparation of loan checks 28,000 checks
prepared
Posting of loan payments 42,000 checks
received
Total $295,000
The following activity driver...
13. Explain the choices that a bank that holds large amounts of adjustable-rate mortgage loans outstanding...
13. Explain the choices that a bank that holds large amounts of
adjustable-rate mortgage loans outstanding has in order to protect
its interest rate income.
The manager of the commercial mortgage department of a large bank has collected data during the...
The manager of the commercial mortgage department of a large
bank has collected data during the past two years concerning the
number of commercial mortgages approved per week. The results from
these two years (104 weeks) are shown to the right.
a. Compute the expected number of mortgages approved per
week.
b. Compute the standard deviation.
c. What is the probability that there will be more than one
commercial mortgage approved in a given week?
Number_Approved Frequency
0 12
1 ...
Mortgage Department Suppose you are the manager of a mortgage department at a savings bank. Under...
Mortgage Department
Suppose you are the manager of a mortgage department at a
savings bank. Under the state usury law, the maximum interest rate
allowed for mortgages is 10 percent compounded annually.
Required:
A. If you granted a $50,000 mortgage at the maximum rate for 30
years, what would be the equal annual payments?
B. If the current market internal rate on similar mortgages is
12 percent, how much money does the bank lose by issusing the
mortgage described in...
Pacific Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans...
Pacific Bank provides loans to businesses in the community
through its Commercial Lending Department. Small loans (less than
$100,000) may be approved by an individual loan officer, while
larger loans (greater than $100,000) must be approved by a board of
loan officers. Once a loan is approved, the funds are made
available to the loan applicant under agreed-upon terms. Pacific
Bank has instituted a policy whereby its president has the
individual authority to approve loans up to $5,000,000. The
president...
An investigator in the Statistics Department of a large university is interested in the effect of...
An investigator in the Statistics Department of a large
university is interested in the effect of exercise in maintaining
mental ability. She decides to study the faculty members aged 40 to
50 at his university, looking separately at two groups: The ones
that exercise regularly, and the ones that don’t. There turn out to
be several hundred people in each group, so she takes simple random
sample of 25 persons from each group, for detailed study. One of
the things...
An investigator in the Statistics Department of a large university is interested in the effect of...
An investigator in the Statistics Department of a large
university is interested in the effect of exercise in maintaining
mental ability. She decides to study the faculty members aged 40 to
50 at his university, looking separately at two groups: The ones
that exercise regularly, and the ones that don’t. There turn out to
be several hundred people in each group, so she takes simple random
sample of 25 persons from each group, for detailed study. One of
the things...
There are three loan officers at farmers National Bank. All decisions on mortgage loans are made...
There are three loan officers at farmers National Bank. All
decisions on mortgage loans are made by one of these officers. The
president of the bank would like to be sure that the rejection rate
is about the same for the three officers. A sample of 200 recent
applications yielded the following results. Is the rejection rate
related to the officer that processes the loan? Use the 0.05
significance level.
Loan Officer
Felix
Otis
Foxburrow
Approved
50
70
55...
A large bank claims that approximately 14% of all house loans it issues are in default....
A large bank claims that approximately 14% of all house loans it
issues are in default. A random sample of 243 house loans issued by
this bank finds that 42 of them are in default. Do the data
indicate that the proportion of loans in default exceeds 14%?
(a) State the null and alternative hypotheses for the test.
(b) State the formula for the test statistic and compute its
value. Justify your answer.
(c) Construct the rejection region and make...
A large bank claims that approximately 14% of all house loans it issues are in default....
A large bank claims that approximately 14% of all house loans it
issues are in default. A random sample of 243 house loans issued by
this bank finds that 42 of them are in default. Do the data
indicate that the proportion of loans in default exceeds 14%?
(a) State the null and alternative hypotheses for the test.
(b) State the formula for the test statistic and compute its
value. Justify your answer.
(c) Construct the rejection region and make...
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