A large bank wishes to limit the median debt-to-equity ratio for its portfolio of commercial loans to

Question:

A large bank wishes to limit the median debt-to-equity ratio for its of commercial loans to l .5. The bank randomly selects 15 of its commercial loan accounts. Audits result in the following debt-to-equity ratios:

Can it be concluded that the median debt-to-equity ratio is less than 1.5 at the .05 level of significance? Explain.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...