Subprime lending was big business in the United States in the mid-2000s, when lenders provided mortgages to people with
Posted: Mon Jul 11, 2022 11:22 am
Subprime lending was big business in the United States in themid-2000s, when lenders provided mortgages to people with poorcredit. However, subsequent increases in interest rates coupledwith a drop in home values necessitated many borrowers to default.Suppose a recent report finds that one in five subprime mortgagesare likely to default nationally. A research economist isinterested in estimating default rates in Illinois with 95%confidence. [You may find it useful to reference the z table.]
How large a sample is needed to restrict the margin of error towithin 0.05, using the reported national default rate? (Round "z"value to 3 decimal places. Do not round intermediate calculations.Round up your final answer to nearest whole number.)
How large a sample is needed to restrict the margin of error towithin 0.05, using the reported national default rate? (Round "z"value to 3 decimal places. Do not round intermediate calculations.Round up your final answer to nearest whole number.)