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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.
At the .05 level of significance, can we conclude that those joining Weight Reducers on average will lose less than 10 pounds? Determine the p -value.
Indicate which of the following responses below is correct. Discuss why it is correct or discuss why standard deviation is such a valuable statistic in so many situations.
A random sample of 11 health maintenance organizations (HMOs) was selected. For each HMO, the co-payment (in dollars) for a doctor's office visit was recorded. The results are as follows:
At the start of the study the mean of the group was 24 and the end of the study the mean of the group was 30. The standard deviation of the difference scores was 12.0 and we had 16 subjects.
Let x be a random variable that represents a test score. What is the lowest score that would still place a student in the top 40% of the scores?
Mothers did not take the drug DES during pregnancy , what is the estimate of the number of women out of 1000 who would be expected to have tissue abnormalities?
A certain airplane has two independent alternators to provide electrical power. The probability that a given alternator will fail on a 1-hour flight is .02. What is the probability that (a) both will fail? (b) Neither will fail? (c) One or the oth..
"What is the five-step process for hypothesis testing? Is the order important? Why or why not?"
A random sample of seven cars was selected; the cars were driven for two weeks without the booster and two weeks with the booster.
Perform a two-sample z-test for proportions to test if men are more likely than women to make online purchases of books.
Researcher wants to estimate in $300 true average amount of money country spends on road repairs each year. If she wishes to be 90% confident, how large sample is essential?
In the last municipal election, a sample of 350 registered voters showed that 85 voted for the incumbants. Find out a 98% confidence interval estimate for the proportion of all voters voting for the incumbants.
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