Question

A credit score is used by credit agencies (such as mortgage companies and banks) to assess the creditworthiness of individuals. Values range from 300 to 850, with a credit score over 700 considered to be a quality credit risk. According to asurvey, the mean credit score is 701.2. A credit analyst wondered whether high-income individuals (incomes in excess of $100,000 per year) had higher credit scores. He obtained a random sample of 43 high-income individuals and found the sample mean credit score to be 715.8 with a standard deviation of 83.4.

Conduct the appropriate test to determine if high-income individuals have higher credit scores at the α = 0.05 level of significance.

State the null and alternative hypotheses.

Upper H0: μ (<,=,≠,>) and _.

Upper H1: μ (<,=,≠,>) and _.

(Type integers or decimals. Do not round.)

Identify the t-statistic.

t0 = _.

(Round to two decimal places as needed.)

Identify the P-value.

P-value = _

(Round to three decimal places as needed.)

Make a conclusion regarding the hypothesis.

("Fail to reject" or "reject") the null hypothesis. There (is, or is not) sufficient evidence to claim that the mean credit score of high-income individuals is

▼

(greater than, less than, equal to) _.

Answer #1

A credit score is used by credit agencies (such as mortgage
companies and banks) to assess the creditworthiness of
individuals. Values range from 300 to 850, with a credit score
over 700 considered to be a quality credit risk. According to a
survey, the mean credit score is
709.1
.
A credit analyst wondered whether high-income individuals
(incomes in excess of $100,000 per year) had higher credit
scores. He obtained a random sample of
32
high-income individuals and found the...

A credit score is used by credit agencies (such as mortgage
companies and banks) to assess the creditworthiness of
individuals. Values range from 300 to 850, with a credit score
over 700 considered to be a quality credit risk. According to a
survey, the mean credit score is 708.2. A credit analyst wondered
whether high-income individuals (incomes in excess of $100,000
per year) had higher credit scores. He obtained a random sample of
34 high-income individuals and found the sample...

A credit score is used by credit agencies (such as mortgage
companies and banks) to assess the creditworthiness of
individuals. Values range from 300 to 850, with a credit score
over 700 considered to be a quality credit risk. According to a
survey, the mean credit score is 702.6. A credit analyst wondered
whether high-income individuals (incomes in excess of $100,000
per year) had higher credit scores. He obtained a random sample of
31 high-income individuals and found the sample...

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...

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 50 people
had a mean FICO score of 707 with...

Your Fair Isaacs Corporation (FICO) credit score is used to
determine your creditworthiness. It is used to help determine
whether you qualify for a mortgage or credit and is even used to
determine insurance rates. FICO scores have a range of 300 to 850,
with a higher score indicating a better credit history. The given
data represent the interest rate (in percent) a bank would offer on
a 36-month auto loan for various FICO scores.
Credit Score
545
595
640...

A user survey is completed by 35 individuals testing a new
interface. They each score the interface on a 1 to 100 scale. The
average score is 71 with a standard deviation of 4. The designer
wants to test the hypothesis that the rating is above 70 with 95%
confidence. ________________
Which of these is the appropriate null hypothesis? (Ho: μ <
70 , Ho: μ ≥ 70 , Ho: μ < 72, or Ho: μ ≥ 72)
________________
What...

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A personnel director in a particular state claims that the mean
annual income is greater in one of the state's counties (county A)
than it is in another county (county B). In County A, a random
sample of
1818
residents has a mean annual income of
$ 40 comma 100$40,100
and a standard deviation of
$ 8900$8900.
In County B, a random sample of
88
residents has a mean annual income of...

Lenders tighten or loosen their standards for issuing credit as
economic conditions change. One of the criteria lenders use to
evaluate the creditworthiness of a potential borrower is her credit
risk score, usually a FICO score. FICO scores range from 300 to
850. A consumer with a high FICO score is perceived to be a low
credit risk to the lender and is more likely to be extended credit
than a consumer with a low score.
A credit card represents...

Statistics students believe that the mean score on a first
statistics test is 65. The instructor thinks that the mean score is
higher. She samples 10 statistics students and obtains the
scores:
Grades
85.5
73.5
62.7
74.4
73.5
96
74.4
68.4
68.4
88
Test grades are believed to be normally distributed.
Use a significance level of 5%.
State the alternative hypothesis: HA:
μ>65
State the mean of the sample: 76.48 (Round to two
decimal places.)
State the standard error of...

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