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The bad debt ratio for a financial institution is defined to be the dollar value of loans defaulted divided by the total dollar value of
The bad debt ratio for a financial institution is defined to be the dollar value of loans defaulted divided by the total dollar value of all loans made. Suppose that a random sample of sixty-five banks in Illinois is selected and that their bad debt ratios (recorded as a percentage) are presented in this file:
bank | Bad Debt Ratio |
1 | 3.38 |
2 | 5.15 |
3 | 4.63 |
4 | 9.69 |
5 | 8.32 |
6 | 3.58 |
7 | 5.9 |
8 | 7.33 |
9 | 6.28 |
10 | 6.87 |
11 | 3.93 |
12 | 5.76 |
13 | 3.98 |
14 | 3.66 |
15 | 7.46 |
16 | 5.59 |
17 | 6.39 |
18 | 6.49 |
19 | 2.31 |
20 | 7.84 |
21 | 9.2 |
22 | 4.64 |
23 | 5.38 |
24 | 4.23 |
25 | 7.12 |
26 | 3.48 |
27 | 2.87 |
28 | 4.59 |
29 | 7.43 |
30 | 8.34 |
31 | 5.15 |
32 | 5.84 |
33 | 4.95 |
34 | 5.6 |
35 | 7.52 |
36 | 5.23 |
37 | 7.88 |
38 | 8.86 |
39 | 4.42 |
40 | 6.64 |
41 | 9.25 |
42 | 6.53 |
43 | 5.35 |
44 | 6.04 |
45 | 5.19 |
46 | 2.87 |
47 | 2.91 |
48 | 1.77 |
49 | 2.34 |
50 | 4.22 |
51 | 3.2 |
52 | 3.14 |
53 | 2.86 |
54 | 4.05 |
55 | 2.01 |
56 | 3.42 |
57 | 4.38 |
58 | 3.1 |
59 | 1.76 |
60 | 3.16 |
61 | 4.06 |
62 | 4.21 |
63 | 2.16 |
64 | 2.76 |
65 | 2.46 |
Banking officials claim that the mean bad debt ratio for all Midwestern banks is 3.5 percent and that the mean bad debt ratio for Illinois banks is higher.
What is t-value?
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