Starting in 2008 an increasing number of people found themselves facing mortgage

Question

Starting in 2008 an increasing number of people found themselves facing mortgages that were worth more than the value of their homes. A fund manager who had invested in debt obligations involving grouped mortgages was interested in determining the group most likely to default on their mortgage. He speculates that older people are less likely to default on their mortgage and thinks the average age of those who do is less than 60 years. To test this, a random sample of 30 who had defaulted was selected; the accompanying sample data reflect the ages of the sampled individuals Click the icon to view the data table a. State the appropriate null and alternative hypotheses b. Use the test statistic approach to test the null hypothesis with = 0.10 HA: s 60 HA: = 60 HA:

Explanation / Answer

Critical value at alpha = 0.10 is Z0.95 = 1.645

  

  

  

  

  

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