Solution Found!
Solved: (a) determine the null and alternative
Chapter 6, Problem 2RE(choose chapter or problem)
Problem 2RE
(a) determine the null and alternative hypotheses
(b) explain what it would mean to make a Type I error
(c) explain what it would mean to make a Type II error
(d) state the conclusion that would be reached if the null hypothesis is not rejected, and
(e) state the conclusion that would be reached if the null hypothesis is rejected.
More Credit-Card Debt Among all credit cards issued, the proportion of cards that result in default was 0.13 in 2010. A credit analyst with Visa believes this proportion is different today.
Questions & Answers
QUESTION:
Problem 2RE
(a) determine the null and alternative hypotheses
(b) explain what it would mean to make a Type I error
(c) explain what it would mean to make a Type II error
(d) state the conclusion that would be reached if the null hypothesis is not rejected, and
(e) state the conclusion that would be reached if the null hypothesis is rejected.
More Credit-Card Debt Among all credit cards issued, the proportion of cards that result in default was 0.13 in 2010. A credit analyst with Visa believes this proportion is different today.
ANSWER:
Answer :
Step 1
a)
From the given problem the proportion of cards that result in default was 0.13 in 2010.
Here the null and alternative hypotheses are.