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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.

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