Question

The National Student Loan Survey asked the student loan borrowers in their sample about attitudes toward debt. Below are some of the questions they asked, with the percent who responded in a particular way. Assume that the sample size is 1288 for all these questions. Compute a 95% confidence interval for each of the questions, and write a short report about what student loan borrowers think about their debt. (Round your answers to three decimal places.)

(a)"Since leaving school, my education loans have not caused me more financial hardship than I had anticipated at the time I took out the loans." 33.6% disagreed.

( , )

(b) "Making loan payments is unpleasant but I know that the benefits of education loans are worth it." 58.2% agreed.

( , )

(c) "I am satisfied that the education I invested in with my student loan(s) was worth the investment for career opportunities." 59.3% agreed.

( , )

(d) "I am satisfied that the education I invested in with my student loan(s) was worth the investment for personal growth." 71.9% agreed.

( , )

Answer 1

Solution:-

a) 95% confidence interval is C.I = (0.3102, 0.3618).

C.I = 0.336 + 1.96 × 0.01316

C.I = 0.336 + 0.025796

C.I = (0.3102, 0.3618)

b) 95% confidence interval is C.I = (0.5551, 0.6089).

C.I = 0.582 + 1.96 × 0.01374

C.I = 0.582 + 0.02694

C.I = (0.5551, 0.6089)

c) 95% confidence interval is C.I = (0.5662, 0.6198).

C.I = 0.593 + 1.96 × 0.01369

C.I = 0.593 + 0.02683

C.I = (0.5662, 0.6198)

d) 95% confidence interval is C.I = (0.6945, 0.7435).

C.I = 0.719 + 1.96 × 0.01252

C.I = 0.719 + 0.02455

C.I = (0.6945, 0.7435)