A bank has recently acquired a new branch and thus has customers in this new territory....

A bank has recently acquired a new branch and thus has customers in this new territory. They are interested in the default rate in their new territory. They wish to test the hypothesis that the default rate is different from their current customer base. They sample 81 files in area A, their current customers, and find that 48 have defaulted. In area B, the new customers, another sample of 103 files shows 72 have defaulted on their loans. What is the Test Statistics to test the Null Hypothesis H0 : pA = pB against the alternative Ha : pA ≠ pB?

Expert Solution

orchestra answered 1 year ago

Panera has recently acquired a new branch and thus has customers in this new territory. They...

Panera has recently acquired a new branch and thus has customers in this new territory. They are interested in the default rate in their new territory. They wish to test the hypothesis that the default rate is different from their current customer base. They sample 93 files in area A, their current customers, and find that 42 have defaulted. In area B, the new customers, another sample of 90 files shows 79 have defaulted on their loans. What is the...

A bank has recently acquired a new branch and thus has customers in this new region....

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