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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
by answerhappygod
- Subprime Lending Was Big Business In The United States In The Mid 2000s When Lenders Provided Mortgages To People With 1 (21.98 KiB) Viewed 35 times
Subprime lending was big business in the United States in the mid-2000s, when lenders provided mortgages to people with poor credit. However, subsequent increases in interest rates coupled with a drop in home values necessitated many borrowers to default. Suppose a recent report finds that two in five subprime mortgages are likely to default nationally. A research economist is interested in estimating default rates in Illinois with 99% confidence. [You may find it useful to reference the z table.] How large a sample is needed to restrict the margin of error to within 0.05, using the reported national default rate? (Round "2" value to 3 decimal places. Do not round intermediate calculations. Round up your final answer to nearest whole number.) Sample size