Five percent of a given bank's mortgages were originated by an employee who later was found to h

Step 1: Calculate the Z-test statistic using the formula: (Z = frac{p - P}{sqrt{frac{P(1-P)}{n}}

Question

Five percent of a given bank's mortgages were originated by an employee who later was found to have engaged in fraudulent lending practices. For mortgages originated by this employee, the likelihood of default was 8%. For mortgages originated by other employees, the likelihood of default was 4%. Suppose you are a bank examiner and you are looking at one of this bank's mortgages that went into default. How likely is it that this mortgage was originated by the employee found to have engaged in fraudulent practices? Not greater than 4% Greater than 4% but not greater than 6% Greater than 6% but not greater than 8% Greater than 8% but not greater than 10% Greater than 10%

          Five percent of a given bank's mortgages were originated by an employee who later was found to have engaged in fraudulent lending practices. For mortgages originated by this employee, the likelihood of default was 8%. For mortgages originated by other employees, the likelihood of default was 4%. Suppose you are a bank examiner and you are looking at one of this bank's mortgages that went into default. How likely is it that this mortgage was originated by the employee found to have engaged in fraudulent practices?
Not greater than 4%
Greater than 4% but not greater than 6%
Greater than 6% but not greater than 8%
Greater than 8% but not greater than 10%
Greater than 10%

Five percent of a given bank's mortgages were originated by an employee who later was found to have engaged in fraudulent lending practices. For mortgages originated by this employee, the likelihood of default was 8%. For mortgages originated by other employees, the likelihood of default was 4%. Suppose you are a bank examiner and you are looking at one of this bank's mortgages that went into default. How likely is it that this mortgage was originated by the employee found to have engaged in fraudulent practices?
Not greater than 4%
Greater than 4% but not greater than 6%
Greater than 6% but not greater than 8%
Greater than 8% but not greater than 10%
Greater than 10%

Added by Dawn B.

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