Find a point estimate of percent confidence interval for p

Assignment Help Applied Statistics

Reference no: EM13909992

In a news story distributed by the Washington Post, Lew Sichelman reports that a substantial fraction of mortgage loans that go into default within the first year of the mortgage were approved on the basis of falsified applications. For instance, loan applicants often exaggerate their income or fail to declare debts. Suppose that a random sample of 1,000 mortgage loans that were defaulted within the first year reveals that 410 of these loans were approved on the basis of falsified applications.

a. Find a point estimate of and a 95 percent confidence interval for p, the proportion of all first-year defaults that are approved on the basis of falsified applications.

b. Based on your interval, what is a reasonable estimate of the minimum percentage of all first- year defaults that are approved on the basis of falsified applications?

Reference no: EM13909992

Questions Cloud

What does population proportion tell us about the population : What does a population proportion tell us about the population? Explain the difference between p and pˆ. What is meant when a public opinion poll's margin of error is 3 percent?

Calculate the frequency of the radiation : Calculate the frequency of the radiation required to eject photoelectrons to a velocity of 9 X105 MS-1 from sodium metal surface, having a threshold frequency of 4.61 x 1014 Hz (mass of photoelectron = 9.109 x 10 -31 kg).

Calculate your break-even point in monthly sales : Calculate your break-even point in monthly sales and Determine your monthly sales needed to have a contribution margin of $10,000

Analysis of communication breakdowns : Write a one-page analysis of communication breakdowns by applying "The Communication Process Model". Try and diagnose precisely where in the model a few of the breakdowns occurred

Find a point estimate of percent confidence interval for p : Find a point estimate of and a 95 percent confidence interval for p, the proportion of all first-year defaults that are approved on the basis of falsified applications.

What is the ytm on these bonds : Company considering bonds for sale that have a $1000 par value and will mature in 16 years. The coupon rate on the bonds is 5% paid annually and are currently selling for $987 each. The bonds are called protected for the next 4 years and after thi..

Write a program to count the number of non-isomorphic : You will write a program to count the number of non-isomorphic simple un-weighted directed graphs with a given number of vertices. The number of vertices will be specified at run time.

Find a confidence interval for the proportion of adults : Find a 95 percent confidence interval for the proportion of all U.S. adults who would say they take part in some form of daily activity to keep physically fit.

What is the npv of the investment : It will be sold for 25,000 at the end of 5 years. Add'l inventory of 11,000 will be required for parts and maintenance of new machine. The company evaluates all projects at this risk level using an 11.99% required rate return. Tax rate is expected..

User Account

All Pages