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You are a bank manager. David has approached your bank for a million dollar loan. The bank can charge 10% interest from David for this loan. The bank will buy government bonds at 4% interest rate in case David's application is rejected. You think there is 10% chance that David would default on his loan based on your knowledge about David. At a cost of about $1000, the bank can investigate and figure out David's complete credit history.
Based on the past performance, you know that the credit reports give a favorable credit rating 80% of the time when the customer honors loan commitments; and unfavorable credit rating 20% of the time even when the customer honors loan commitments. The credit reports give a favorable credit rating 25% of the time and an unfavorable credit rating 75% of the time when the customer does not honor loan commitments.
Assume R is commutative ring. Prove that the following are equivalent: Here N(R) denotes the nilradical of R. The set of nilpotent elements form an ideal called the nilradical of R
What is the probability that the project will be completed in 17 months or less?
He reviews the last eight months at dealership B and finds the standard deviation of the eight monthly sales to be 22.95. Using the .01 significance level does the analyst find evidence that the boast of dealership A is correct?
Create the 95% confidence interval about mean value of y, number of days absent, given x = 95 degrees, and = 0.449x - 30.27
In the study of fingerprints, an important quantitative characteristic is the total ridge count for the 10 fingers of the individual.
Are there any statistically significant differences in baseline characteristics between treatment groups? Justify your answer. Write the hypotheses and the test statistic used to compare ages between groups. (No calculations - just H 0 , H 1 and for..
A survey conducted by the American Automobile Association showed that the family of four spends an average of $215.60 per day while on vacation. Suppose a sample of 64 families of four vacationing at Niagara Falls results in a sample mean of $252...
What can you tell me about the direction, strength and significance of this association and What would you expect for somebody without any formal education whatsoever and what can you tell me about the nature of this relationship?
Pulse rate is an important measure of the fitness of a person's cardiovascular system. The mean pulse rate for all U.S. adult males is approximately 72 heart beats per minute.
Use Chebyshev's theorem to determine what percent of values will fall between 58 and 82 for data set with mean of 70 and standard deviation of 4.
A bag contains five purple ("P") blocks and one yellow ("Y") blocks. Without looking into the bag you reach in, take out a block, return the block to the bag, and then repeat the same process a number of times. Which of the following sequences of ..
The error between the sample mean and the population mean for a sample of n = 16 is 5 points and the error between a sample mean and population mean for a sample of n = 100 is 2 points. Explain the difference in the standard error for the two samp..
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