Question

1. FICO Credit Scores

The data set, FICO Credit Rating Scores consists of a simple random sample of FICO credit rating scores (Dataset: Q4 – FICO Scores). As of this writing, the mean FICO score was reported to be 670. Use a .05 level of significance to test the claim that this sample of FICO scores comes from a population with a mean equal to 670.

Data SET

FICO
708
713
781
809
797
793
711
681
768
611
698
836
768
532
657
559
741
792
701
753
745
681
598
693
743
444
502
739
755
835
714
517
787
714
497
636
637
797
568
714
618
830
579
818
654
617
849
798
751
731
850
591
802
756
689
789
628
692
779
756
782
760
503
784
591
834
694
795
660
651
696
638
635
795
519
682
824
603
709
777
829
744
752
783
630
753
661
604
729
722
706
594
664
782
579
796
611
709
697
732

a) Identify the null hypothesis and alternative hypothesis from a given claim, and express both in symbolic form

b) Identify the critical value(s), given a significance level and illustrate the region(s) of rejection

c) Calculate the value of the test statistic and identify whether the obtained value is within the region of rejection

d) Identify the P-value.

e) State the conclusion about a claim (based on either the value of the test statistic or the P-value); this should include a well-crafted sentence that states the conclusion within the specific context of the problem.

Answer 1