Failure to Meet Payments on Student Loans Guaranteed by the US

question 6

Essay

Failure to meet payments on student loans guaranteed by the US government has been a major problem for both banks and the government.Approximately 50 percent of all student loans guaranteed by the government are in default.A random sample of 350 loans to college students in one region of the United States indicates that 147 are in default.Calculate the appropriate test statistic to test the hypothesis that the selected region's default rate is lower than the national percentage.

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Definitions:

Arousal

A physiological and psychological state of being awake or reactive to stimuli, often associated with physical excitation or emotional responses.

Extrinsic Locus

The belief that control over one's life events and outcomes resides primarily in external factors or forces beyond one's personal control.

Julian Rotter

A psychologist known for his work in social learning theory and the introduction of the concept of locus of control.

Ellen Langer

A psychologist known for her work on the illusion of control, mindfulness, and decision-making.