Question

Assume that the two samples are independent simple random samples selected from normally distributed populations. Do not assume that the population standard deviations are equal. Simple random samples of​ high-interest ​(8.7​%) mortgages and​ low-interest ​(6.3​%) mortgages were obtained. For the 50 ​high-interest mortgages, the borrowers had a mean credit score of 595.3 and a standard deviation of 12.8. For the 50 ​low-interest mortgages, the borrowers had a mean credit score of 761.1 and a standard deviation of 16.2. Use a 0.05 significance level to test the claim that the mean credit score of borrowers with​ high-interest mortgages is lower than the mean credit score of borrowers with​ low-interest mortgages. Does the credit rating score appear to affect mortgage​ payments? If​ so, how?

Answer 1

Conclusion: We can conclude that the mean credit score of borrowers with​ high-interest mortgages is lower than the mean credit score of borrowers with​ low-interest mortgages.