Mathematics, 06.05.2020 03:39 Edrayton

The mortgage department of a large bank is interested in the nature of loans of first-time borrowers. This information will be used to tailor their marketing strategy. They believe that 40% of first-time borrowers take out smaller loans than other borrowers. They perform a hypothesis test to determine if the percentage is the same or different from 40%. They sample 100 first-time borrowers and find 53 of these loans are smaller than the other borrowers. For the hypothesis test, they choose a 5% level of significance. What would be the null and alternative hypotheses

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The mortgage department of a large bank is interested in the nature of loans of first-time borrowers...