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Two random samples of student loans were collected: one from students at for-profit schools and another from students at non-profit schools. The accompanying data show

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Two random samples of student loans were collected: one from students at for-profit schools and another from students at non-profit schools. The accompanying data show the sample sizes and the number of loans in each sample that defaulted. Complete parts a through c. Click the icon to view the loan data. a. Perform a hypothesis test using a = 0.01 to determine if the proportion of for-profit loans that default is larger than the proportion of loans for nonprofit schools that default. Let p, represent the population proportion of loans for for-profit schools that default and let p2 represent the population proportion of loans for nonprofit schools that default. Identify the null and alternative hypotheses. Select the correct choice below and fill in the answer boxes to complete your choice. (Type integers or decimals. Do not round.) A. Ho: P1 - P2 2 O B. Ho: P1 -P2> O C. Ho: P1 - P2* H1 : P1 - P2 Hy : P 1 - P 2 5 Hy : P1 - P2 = O D. Ho: P1 - P2 S O E. Ho: P1 - P2 = OF. HO: P1 - P2 H1: P1 - P2* H1: P1 - P2 2 Identify the test statistic. (Round to two decimal places as needed.) Identify the critical value. (Round to two decimal places as needed.) State the conclusions the null hypothesis. There sufficient evidence to conclude that the proportion of for-profit loans that default larger than the proportion of loans for nonprofit schools that default. b. Determine the p-value and interpret the results. i Loan Data X p-value = (Round to three decimal places as needed.) Interpret the results. For-Profit Nonprofit X2 = 13 The p-value is with the conclusion made in part a. X1 = 25 the alpha level of 0.01. Therefore. the null hypothesis. This conclusion n1 = 248 12 = 231 c. Construct a 99% confidence interval to estimate the difference in the proportion of loans in default in these two types of schools (for-profit - nonprofit). The confidence interval has a lower limit of | and an upper limit of Print Done (Round to three decimal places as needed.) (? Click to select your answer(s). MacBook Air DII DD 888 DD F10 F11 F12 20 FB F9 F3 F4 F5 F6 esc F1 F2 @ # % O delete 3 5 6 8 2

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