(Answered) Question a jumbo mortgage is a mortgage with a loan amount

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Question: A jumbo mortgage is a mortgage with a loan amount above the industry-standard definition of conventional conforming loan limits. As of January 2009, approximately 2.57% of people who took out a jumbo mortgage during the previous 12 months were at least 60 days late on their payments. Suppose that this percentage is based on a random sample of 1430 people who took out a jumbo mortgage during the previous 12 months.

a. Construct a 95% confidence interval for the proportion of all people who took out a jumbo mortgage during the previous 12 months and were at least 60 days late on their payments.

b. Suppose the confidence interval obtained in part a is too wide. How can the width of this interval be reduced? Discuss all possible alternatives. Which alternative is the best?

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