Statics and probAbility

ptz1 p 1-p n Equifax, a credit rating agency, wants an estimate of the percentage of delinquent credit cards (where the customer has not made at least the minimum monthly payment by the due date). The manager randomly selects 175 credit card accounts and finds 7 are delinquent. (a) Give a point estimate of the percentage of delinquent credit cards. [2 mark] ANSWER (percentage, 1 decimal place): (b) Construct a 95% confidence interval estimate for the percentage of delinquent credit cards. [6 marks] ANSWER (percentage, 1 decimal place): (c) What is the margin of error on the estimate? [2 mark] ANSWER (d) What is the worst-case estimate for the percentage delinquent credit cards? [2 mark] ANSWER (percentage, 1 decimal place)