Show the work The risk manager at the Modern Credit Card Company is interested i

Question

Show the work

The risk manager at the Modern Credit Card Company is interested in the evaluation of the effect of customers marital status on credit payment defaults. For this, he is interested in the proportion of married vs. single individuals who defaulted on at least one of their credit card payments over the last six months. Two samples of 13, 659 married and 15, 964 single individuals were selected and their payment records were used to compute proportions of Married in default (p1) and Single in default (p2). The risk manager wants to test that the proportion of Married in default is less than the proportion of Single in default, using a significance level of 1%. The test output is shown below: What is the null hypothesis for the test? A. H_0: p_1

Explanation / Answer

1) option C is correct

2)

as it is one tailed test critical value =2.33

therefore option B

3) upper tail value =(p1-p2)-lower tail value =(0.504136-0.503435)-(-0.014320)=0.016

option B

4) option B ; fail to reject the null hypothesis because p value is larger then the significance level

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.