Student loans: In an article from September 13, 2010 titled \"Student Loan Defau

Question

Student loans: In an article from September 13, 2010 titled "Student Loan Default Rates Increase, " the website ed.gov analyzes trends in default rates for student loans over time. For the year 2008, the default rate for graduates was 7%. This means that 7% of the students who graduated in 2008 and had student loans did not make payments to repay those loans. Suppose we select 3 random samples of 1000 students each from this population of graduates from 2008. Which of the following is most likely to occur? Each sample will contain 70 students who have defaulted on their student loans because 7% of 1000 is 70. The number who have defaulted increase as we select samples because the default rates are increasing The number who have defaulted will vary in each sample due to the random selection of graduates.

Explanation / Answer

Since we are selecting the samples at random and the since 3 samples are selected, the proportion of default rate in these samples might vary. so answer is C

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---