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 Debt_Ratio.xlsx

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.

1. What is the null hypothesis?

2. What is the t-value?

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