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Question: According to Freddie Mac, 74% of borrowers who refinanced their loans maintained the same loan value. If a sample size of 2,500 was used to obtain this information,
a. Determine if the sample size for the test is large enough to warrant approximating the sample proportion's distribution with a normal distribution.
b. Use this information to determine if less than 75% of new mortgages had a refinance loan amount equal to the same value as their original loan. Use a test statistic approach with a = 0.025.
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