Nelson’s Mutual Savings Bank was concerned about the number of delinquent loan
customers – that is, customers who are either past due or defaulting on their loans. So
they conducted review of their customer records in order to help them decide how to
update their loan policies and fees. They randomly selected 40 customers with loans in
order to determine how much they were past due as of the end of 2016. If a customer
defaulted on a loan in 2016, that total amount was listed.
Here are the results:
Customer
Record #
Amount Past
Due/Defaulted
1 $0
2 $0
3 $460
4 $110
5 0
6 0
7 0
8 $250
9 0
10 $180
11 0
12 0
13 $340
14 $70
15 0
16 $1,532
17 0
18 $166
19 $235
20 0
21 $100
22 0
23 $123,000
24 0
25 0
26 $50
27 $230
28 0
29 0
30 0
31 $150
32 $195
33 0
34 0
35 $88
36 $120
37 0
38 $225
39 $317
40 0
a. (5 points) Banks have a variety of loan customers and once in a great while a major
customer has a huge default. These defaults are in no way typical and the
statisticians conducting the review do not want any crazy outliers to throw off the
analysis. Are there any outliers in the above sample? If so, list them here and then
remove them from the sample set for all your remaining calculations.
Outlier(s): ______________________________________________
b. (5 points) Based upon the revised sample, what percent of customers at this bank are delinquent?
