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The Fair Isaac Corporation (FICO) credit score is used by banks and other lenders to determine...

The Fair Isaac Corporation (FICO) credit score is used by banks and other lenders to determine whether someone is a good credit risk. Scores range from 300 to 850, with a score of 720 or more indicating that a person is a very good credit risk. An economist wants to determine whether the mean FICO score is lower than the cutoff of 720. She finds that a random sample of 60 people had a mean FICO score of 695 with a standard deviation of 65. Can the economist conclude that the mean FICO score is less than 720? Use the α=0.05 level of significance and the P-value method with the TI-84 Plus calculator.

a. state null and alternative hypothesis. what tail is the hypothesis test?

b. Compute the P-value of the test statistic.

c. Determine whether to reject H0. Use the α=0.05 level of significance.

d. State a conclusion

Math   Statistics-And-Probability   
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