Financial incentives by the major automakers are reducing banks' share of the market for automobile loans. A random sample of car loans was taken in 2007 and also in 2014. Let p(new) and p(old)

be the proportion of bank loans among all car loans in 2014 and 2007, respectively. Is there evidence of a decrease in the proportion of bank loans from 2007 to 2014 ?Step 1: State the null and alternative hypothesis.

Step 2: Ignore your answer in Step 1. Suppose the following hypotheses are examined at =1%

H0=p(new)-p(old)=0

Ha=p(new)-p(old) does not = 0

Find the decision rule of the above test.

A random sample of 100 car loans was selected from each of the two years. Among the random sample in 2007, 59 loans were found to be bank loans, and in 2014, 35 loans were found to be bank loans.

Find the following statistics:

Group of answer choices

1. The test statistic

2. The margin of error associated with a 99% confidence interval for the difference between the two proportions