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Fair Isaac, the company that developed the credit score (FICO) model used by most lenders today,...

Fair Isaac, the company that developed the credit score (FICO) model used by most lenders today, would like to test the linear relationship between age and credit score of an individual. The follow table shows the credit scores and ages of 10 randomly selected individuals:

AGE: 36 24 54 28 31 47 35 59 40 42

FICO: 675 655 760 615 660 790 720 760 685 610

Using XLS, calculate the correlation coefficient for this sample. Test to see if the population correlation coefficient is different from zero, using a significance of 0.02. What are your conclusions?

Math   Statistics-And-Probability   
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