Failure to Meet Payments on Student Loans Guaranteed by the US

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