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 p-value associated with the test statistic, and, using the p-value rule, test the hypothesis that the default rate for the selected region is lower than the national percentage at α = .01.

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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 p-value associated with the test statistic, and, using the p-value rule, test the hypothesis that the default rate for the selected region is lower than the national percentage at α = .01.

Failure to Meet Payments on Student Loans Guaranteed by the US