Discussion:
Q: A large banking corporation believes that 80% of the loan applications it receives are approved within 24 hours. It decides to take a random sample of 10 loan applications every day for 3 months and record the number of the applications that are approved within 24 hours. The following data are obtained:
|
Number of Loan Applications in 10 Approved in 24 Hours
|
Frequency
|
|
4
|
1
|
|
5
|
5
|
|
6
|
11
|
|
7
|
19
|
|
8
|
27
|
|
9
|
18
|
|
10
|
7
|
|
Total
|
88
|
a). Set up the necessary hypotheses to test whether the data come from a binomial distribution with n = 10 and o = 0.80.
b). Find the expected frequency distribution for the data.
c). A the 0.05 level of significance, is it reasonable to assume that the number of loan applications that are approved in 24 hours has a binomial distribution with o = 0.80.