Conduct an appropriate analysis

Reference no: EM13983071

A senior loan officer for Whitney National Bank has recently studied the bank's real estate loan portfolio and found that the distribution of loan balances is approximately normally distributed with a mean of $155,600 and a standard deviation equal to $33,050. As part of an internal audit, bank auditors recently randomly selected 100 real estate loans from the portfolio of all loans and found that 80 of these loans had balances below $170,000. The senior loan officer is concerned that the sample selected by the auditors is not representative of the overall portfolio. In particular, he is interested in knowing the expected proportion of loans in the portfolio that would have balances below $170,000. You are asked to conduct an appropriate analysis and write a short report to the senior loan officers with your conclusion about the sample.

Reference no: EM13983071

Questions Cloud

Find an expression for the sum of intensities of light : The intensity of light from a 100-watt light bulb is about 1 =32/ad2. Find an expression for the sum of intensities of light from a 100-watt bulb and a 60-watt bulb.

Compute the mean and standard deviation : Compute the mean and standard deviation for the sample data in the file Drug$.

Determine refractive power for her contact lens prescription : As a matter of convenience, she decides to switch to contacts. Determine the refractive power for her contact lens prescription.

Coopers human capital index report : The Price water house Coopers Human Capital Index Report indicated that the average cost for an American company to fill a job vacancy during the study period was $3,270. Sample data similar to that used in the study are in a file entitled Hired.

Conduct an appropriate analysis : In particular, he is interested in knowing the expected proportion of loans in the portfolio that would have balances below $170,000. You are asked to conduct an appropriate analysis and write a short report to the senior loan officers with your c..

What is the averge stress when the pressure drop : A farm water sprinkler is dead headed .the pipe raduis is 4 inches. What is the averge stress when the pressure drop is 38 psi over the entier lenght of the pipe?

Find an equation of the tangent line to the curve : For f (x) = 3/x: Find f'(x). Find f'(2). Find an equation of the tangent line to the curve at x = 2

Enough capacity with the new : The marketing slogan will be "Why Pay for Storage Capacity that You Don't Need?" Based on the data from the study of iPod owners, what percentage of owners, based on their current usage, would have enough capacity with the new 1-GB player?

Comment on the ramifications of step : Assuming that the manager wants at most a 5% chance of this happening, at what level should she set the mean fill level? Comment on the ramifications of this step, assuming that the company fills tens of thousands of cans each week.

User Account

All Pages