4. Failure to meet payments on student loans guaranteed by the United States (U.S.) government has been a major problem for both banks and the government. Approximately 50% of all student loans guaranteed by the government are in default. A random sample of 350 loans to college students in one region of the U.S. indicates that 147 loans are in default. Do the data indicate that the proportion of student loans in default in this area of the country differs from the proportion of all student loans in the U.S. that are in default?  Use  α = 0.01. (i) The alternative hypothesis for the above problem is

An insurance company offers four different deductible levels-none, low, medium, and high-for its homeowner's policyholders and three different levels-low, medium, and high-for its automobile policyholders. The accompanying table gives proportions for the various categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.05 (5% of all such individuals). Homeowner's N L M н Auto L 0.04 0.05 0.05 0.02 M 0.07 0.11 0.20 0.11 0.02 0.03 0.15 0.15 Suppose an individual having both types of policies is randomly selected. (a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible? (b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible? auto deductible homeowner's deductible (c) What is the probability that the individual is in the same category for both auto and homeowner's deductibles?…

5. First USA, a major credit card company, is planning a new offer for their current cardholders. The offer will give double miles on purchases for the next 6 months if the cardholder goes online and registers for the offer. To test the effectiveness of the campaign, First USA recently sent out offers to a random sample of 50,000 cardholders. Of those, 1284 registered. a) Construct a 95% Cl for the true proportion of those cardholders who will register for the offer. Assume the requirements are met. This Cl is for b) If the acceptance rate is only 2% or less, the campaign won't be worth the expense. Given the confidence interval you found, is the campaign worth the expense? Explain why using the Cl.

1.

Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 58 stocks traded on the NYSE that day showed that 21 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of α=0.02.What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value = The p-value is... less than (or equal to) αα greater than αα This test statistic leads to a decision to... reject the null accept the null fail to…

An insurance company offers four different deductible levels—none, low, medium, and high—for its homeowner's policyholders and three different levels—low, medium, and high—for its automobile policyholders. The accompanying table gives proportions for the various categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.07 (7% of all such individuals).   Homeowner's Auto      N L M H L 0.04 0.07 0.05 0.01 M 0.07 0.08 0.20 0.13 H 0.02 0.03 0.15 0.15 Suppose an individual having both types of policies is randomly selected. (d) Based on your answer in part (c), what is the probability that the two categories are different?(e) What is the probability that the individual has at least one low deductible level?(f) Using the answer in part (e), what is the probability that neither deductible level is low?

An insurance company offers four different deductible levels-none, low, medium, and high-for its homeowner's policyholders and three different levels-low, medium, and high-for its automobile policyholders. The accompanying table gives proportions for the various categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.07 (7% of all such individuals). Auto L M H Homeowner's NLMH Suppose an individual having both types of policies is randomly selected. (a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible? 0.04 0.07 0.05 0.02 0.07 0.09 0.20 0.11 0.02 0.03 0.15 0.15 (b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible? auto deductible homeowner's deductible (c) What is the probability that the individual is in the same category for both auto and homeowner's deductibles?…

4. "As the death rate from drug overdoses surged in the US over the last several years, the number of organ donors who died from overdoses increased from 1.10% of all deceased organ donors in 2000 to 9.34% in 2015, according to government data . The rate of deaths from drug overdoses has increased 137% since 2000, including a 200% increase in the rate of overdose deaths involving opioids" The Guardian May 1st, 2016 a) The percentage of organ donors who died from drug overdoses changed by 9.34% - 1.10% = 8.24% between 2000 and 2015. What is this as a percentage of donors dying from drug overdoses in 2000? b) True/False: Between 2000 and 2015 the rate of overdose deaths involving opioids doubled. *** a苓0 hp II

Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 52 stocks traded on the NYSE that day showed that 18 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly more than 0.3. You use a significance level of α=0.10What is the test statistic for this sample? Use ˆpp^ rounded to 4 decimal places. (Report answer accurate to 4 decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to 4 decimal places.)p-value = The p-value is... less than (or equal to) α greater than α This p-value leads to a decision to... reject the null…

8. The Bureau of Justice conducted a study of 272,111 former inmates released from prisons in 15 states in 1994. A classification of the former prisoners by "most serious offense for which released" yielded the following: 22.5% violent, 33.5% property, 32.6 % drug, 11.4% other. Of those prisoners whose most serious crime was violent 61.7% were rearrested within 3 years of release. For other categories, the recidivism rate (defined as rearrested within 3 years of release) were: property 73.8%, drug 66.7%, and other 62.6%. If a released prisoner from these 15 states is rearrested within 3 years of release, what is the probability that this prisoner's most serious offence was violent?