Question

The bad debt ratio for a financial institution is defined to be the dollar value of loans defaulted divided by the total dollar value of all loans made. Suppose that a random sample of eighty banks in Illinois is selected and that their bad debt ratios (recorded as a percentage) are presented in this file - Debt_Ratio.xlsx Banking officials claim that the mean bad debt ratio for all midwestern banks is 3.5 percent and that the mean bad debt ratio for Illinois banks is higher. What is the null hypothesis? What is the T Value and What is your conclusion at a 5% level of significance? Would you reject the null hypothesis? What is the t value with 2# after decimal point?

bank	Bad Debt Ratio
1	3.38
2	5.15
3	4.63
4	9.69
5	8.32
6	3.58
7	5.9
8	7.33
9	6.28
10	6.87
11	3.93
12	5.76
13	3.98
14	3.66
15	7.46
16	5.59
17	6.39
18	6.49
19	2.31
20	7.84
21	9.2
22	4.64
23	5.38
24	4.23
25	7.12
26	3.48
27	2.87
28	4.59
29	7.43
30	8.34
31	5.15
32	5.84
33	4.95
34	5.6
35	7.52
36	5.23
37	7.88
38	8.86
39	4.42
40	6.64
41	9.25
42	6.53
43	5.35
44	6.04
45	5.19
46	2.87
47	2.91
48	1.77
49	2.34
50	4.22
51	3.2
52	3.14
53	2.86
54	4.05
55	2.01
56	3.42
57	4.38
58	3.1
59	1.76
60	3.16
61	4.06
62	4.21
63	2.16
64	2.76
65	2.46
66	3.01
67	3.13
68	3.34
69	3.52
70	3.26
71	3.64
72	2.66
73	4.67
74	4.13
75	3.38
76	3.28
77	3.86
78	3.31
79	3.2
80	2.87

Answer 1