Criterion for rejection or non-rejection of null hypothesis

Reference no: EM13154661

The president of Crooked Arrow National Bank wants to determine whether more than 60% of the banks loans are made to persons residing in Crooked Arrow. A random sample of 500 loans is selected with 320 being made to persons residing in Crooked Arrow.

a. Does the sample data provide evidence to conclude the more than 60% of the banks loans are made to persons residing in Crooked Arrow (using alpha=0.01)

1. Formulate the null and alternative hypotheses.
2. Determine the criterion for rejection or non-rejection of the null hypothesis.
3. Calculate the test statistic.
4. Compare the test statistic to the rejection region and make a judgment about the null and alternative hypotheses.
5. Interpret the statistical decision in terms of the problem.
6. Compute the observed "p" value in the hypothesis test and interpret this value. What does it mean?

Reference no: EM13154661

Questions Cloud

Explain the likely effects on marginal revenue product : Suppose that there is an increase in the demand for personal computer systems. Explain the likely effects on marginal revenue product, marginal factor cost, and the number of workers hired by the firm.

What will the final volume of the sample be : A sample of oxygen that occupies 1.00 × 10-6 mL at 575 mm Hg is subjected to a pressure of 1.25 atm. What will the final volume of the sample be if the temperature is held constant

Relationship between the financial statements : In what ways do the elements of the four financial statements interact with one another? How might changing one of the financial statements affect the other financial statements? Why is it essential to understand the relationship between the finan..

Compute molar mass of ethanol after calculated molar mass : Compute molar mass of ethanol after calculated molar mass in an experiment and the given molar mass of ethanol is 46.07g

Criterion for rejection or non-rejection of null hypothesis : Formulate the null and alternative hypotheses. Determine the criterion for rejection or non-rejection of the null hypothesis.

What happened to real output : what happened to real output? by how much would the price index have had to rise for real income to remain constant?

Present value of the minimum lease payments : On January 1, 2009, Princess Corporation leased equipment to King Company. The lease term is 8 years. The first payment of $675,000 was made on January 1, 2009. The equipment cost Princess Corporation $3,600,000. The present value of the minimum l..

Weighted average cost of capital basics : The financial statements of Lioi Steel Fabricators are shown below the actual results for 2010 and the projections for 2011. Free cash flow is expected to grow at a 6% rate after 2011. The weighted average cost of capital is 11%.

What mass of nahco3 would be required : A 2.5L bottle of concentrated sulfuric acid H2SO4 (16M) falls and breaks on the floor. What mass of NaHCO3 would be required to neutralize this acid spill through the following reaction HCO3 + H => H2O +CO2

User Account

All Pages