A Bank Examiner Is Interested in Estimating the Mean Outstanding

question 74

Multiple Choice

A bank examiner is interested in estimating the mean outstanding defaulted loans balance of all defaulted loans over the last three years.A random sample of 20 defaulted loans yielded a mean of $67,918 with a standard deviation of $16,552.40.If the outstanding balance is normally distributed,the 90% confidence interval for the mean balance of defaulted loans over the past three years would be _____.

• A)[66,487 69,349]
• B)[39,299 96,537]
• C)[57,329 78,507]
• D)[61,829 74,007]
• E)[61,519 74,317]

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Definitions:

Positive Correlation

A relationship between two variables where both variables move in the same direction, meaning as one variable increases, the other also increases.

Time Management

The process of organizing and planning the best way to divide one's time among various activities to achieve efficiency and goals.

Spearman's Rank

A non-parametric method used to measure the strength and direction of the association between two ranked variables.

Ordinal

A type of qualitative data that represents categories with a meaningful order or ranking, but without a precise mathematical difference between them.