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 default rate for the selected region is lower than the national percentage.

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The Answer of 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 default rate for the selected region is lower than the national percentage.

Failure to Meet Payments on Student Loans Guaranteed by the US