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ERNIE - Home E Grades for Anthony P X E Topic: 7.3 Discussion x E Grades for Anthony E M8-Ch13 Hw son.com/Student/PlayerHomework.aspx?homeworkld=695812292&questionid-5&flushed=false&cld-8255792&.back=DoAssignments. tion Appl - Apr 2025 - Online Question 10, 13.CE.27 HW Score Hw Part 4 of 4 Points Before lending someone money, banks must decide whether they believe the applicant will repay the loan. One strategy used is a poi K income level, credit history, current debt burden, and so on. The higher the point total, the more convinced the bank is that it's safe to think of this decision as a hypothesis test. Since the bank makes its profit from the interest collected on repaid loans, their null hypoth falls below the minimum cutoff will the bank reject the null and deny the loan. a) When a person defaults on a loan, which type of error did the bank make? O A. Type | error B. Type ll error b) Which kind of error is it when the bank misses an opportunity to make a loan to someone who would have repaid it? O A. Type ll error B. Type | error c) Suppose the bank decides to lower the cutoff score from 250 points to 200. Is that analogous to choosing a higher or lower val A. lower alpha level B. higher alpha level d) What impact does this change in the cutoff value have on the chance of each type of error? O A. Increased Type I, increased Type II. O B. Decreased Type I, decreased Type II. O C. Decreased Type I, increased Type II. D. Increased Type I, decreased Type II. ore help - Q Search