9. 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 50% 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 50%. They sample 100 first-time borrowers and find 53 of these loans are smaller that the other borrowers. Perform a hypothesis test to determine if the percentage is the same or different from 50%. Use a 1% level of significance.
Step 1
Identify variable and parameter with variable and words
X =
or p =
Step 2
Identify Null Hypothesis, Alternative Hypothesis, (words and algebraically) and Level of Significance
H0 :
Ha :
=
Step 3
Check for normality
Can you be confident in your decision?			POINTS	Out OF
									8
Step 4
Find sample statistic, test statistic and pvalue, Draw a picture.
X or p		=		SE =
Z or T		=						POINTS	Out OF