5. We are interested in finding out what proportion of borrowers default on a credit card loan. We sample 100 credit card loans. We find that 10 default. (A) Find the proportion of credit card borrowers that default (B) Construct a 80% Confidence Interval. (C) Construct a 99% Confidence Interval. Carefully interpret your findings. [Hint: Use proportions formula for the standard error]

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5. We are interested in finding out what proportion of borrowers default on a credit card loan. We sample 100 credit card loans. We find that 10 default.

(A) Find the proportion of credit card borrowers that default.

(B) Construct a 80% Confidence Interval.

(C) Construct a 90% Confidence Interval. Carefully interpret your findings.

*Hint: Use proportions formula for the standard error.*
Transcribed Image Text:5. We are interested in finding out what proportion of borrowers default on a credit card loan. We sample 100 credit card loans. We find that 10 default. (A) Find the proportion of credit card borrowers that default. (B) Construct a 80% Confidence Interval. (C) Construct a 90% Confidence Interval. Carefully interpret your findings. *Hint: Use proportions formula for the standard error.*
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