Answer to Question #44855 in Statistics and Probability for venotini

Question

Question 7
Credit scorecards are used by financial institutions to help decide to whom loans should be granted (see the Applications in banking: Credit Scorecards summary on page 63). An analysis of the records of a random sample of loans at one bank produced the following results:
Score below 600 Score 600 or More
Sample size 562 804
Number defaulted 11 7
Do these results allow us to conclude that those who score below 600 are more likely to default than those who score 600 or more? Use a 10% significance level.