Four percent of the customers of a mortgage company default on ...

[jon_i]

Four percent of the customers of a mortgage company default on their payments. A sample of five customers is selected. What is the probability that exactly two customers in the sample will default on their payments?
 a. .2592
  b. .0142
  c. .9588
  d. .7408

Question 2

Consider the following hypothesis test: H0: p  .8 Ha: p > .8 A sample of 400 provided a sample proportion of .853.
 a. Determine the standard error of the proportion.
  b. Compute the value of the test statistic.
  c. Determine the p-value; and at a 5 level, test the above hypotheses.

[C.mcnichol98]

Answer to Question 1

b

Answer to Question 2

a. .02
b. z = 2.65
c. p-value = .004; reject H0

[jon_i]

Thanks for the timely response, appreciate it

[rachel]

Excellent