Question
A large national bank determines if each of its branches is profitable or not profitable. Additionally, the location of each branch is classified as urban,
A large national bank determines if each of its branches is profitable or not profitable. Additionally, the location of each branch is classified as urban, suburban, or rural. A summary of the profitability and location type of a random sample of 175 of the bank's branches is shown in the table. a) From the sample of 175 branches summarized above:(i) What proportion of branches are profitable?(ii) What proportion of branches from an urban location are profitable?(iii) What proportion of branches from a rural location are profitable? (b) Assuming the conditions for inference are met, does the data provide convincing statistical evidence that profitability and location type are independent for the bank at a 5 percent level of significance? Complete the appropriate inference procedure to support your answer. *
profitable | non profitable | |
urban | 64 | 17 |
suburban | 39 | 22 |
rural | 18 | 15 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started