I am stumped on the following problem and could use some help quickly. Please provide guidance on how to solve the problem.
1) The probabilityof default on a certain type of commercial loan is 0.10. If a bank makes 100 of these loans, what is the probability that at least 16 will default?
2) For a one-tailed test of hypothesis for a single population meanwith 13 degrees of freedom, the value of the test statistic was 1.863. The p-value is
A) between .05 and .025.
B) between .10 and .05
C) greater than .10
D) less than .001.
The solution provides step by step method for the calculation of test statistic for t test. Formula for the calculation and Interpretations of the results are also included.