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According to a 2017 report, \(64 \%\) of college graduate in Illinois had student loans. Suppose a random sample of 80 college graduates in Illinois is selected and 48 of them had student loans. (Source: Lendedu.com) a. What is the observed frequency of college graduates in the sample who had student loans? b. What is the observed proportion of college graduates in the sample who had student loans? c. What is the expected number of college graduates in the sample to have student loans if \(64 \%\) is the correct rate? Do not round off.

Short Answer

Expert verified
a. The observed frequency of college graduates with student loans is 48. \nb. The observed proportion of college graduates with student loans is 0.6 or 60%. \nc. The expected number of college graduates with student loans if 64% is the correct rate is 51.2.

Step by step solution

01

Calculate Observed Frequency

The observed frequency refers to the actual number of occurrences of an event. In this case, it is the number of graduates with student loans from the sample. According to the exercise statement, out of 80 college graduates selected, 48 had student loans. Therefore, the observed frequency is 48.
02

Calculate Observed Proportion

The observed proportion is the ratio of the number of occurrences of the event to the total sample size, expressed as a decimal or fraction. In this scenario, it would be the number of graduates with student loans divided by the total sample size. This is calculated as \(48 ÷ 80 = 0.6 \) or \(60\%\). Therefore, the observed proportion of graduates with student loans is 60%.
03

Calculate Expected Number

The expected number in statistical analysis refers to the number of times an outcome would be expected to occur based on a probability percentage. It is generally calculated by multiplying the total sample size by the probability. Here, it would be the total sample size (80) multiplied by the given rate (64%), expressed as a decimal. \( 80 * 0.64 = 51.2 \) Hence, the expected number of graduates with student loans, given a rate of 64%, is 51.2.

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