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 706.3. 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 45 high-income individuals and found the sample mean credit score to be 725.6 with a standard deviation of 81.6. Conduct the appropriate test to determine if high-income individuals have higher credit scores at the a= 0.05 level of significance. State the null and alternative hypotheses. Hot H₁: H IU (Type integers or decimals. Do not round.)

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
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 a survey, the mean credit score is 706.3. 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 45 high-income individuals and found the sample mean credit score to be 725.6 with a standard deviation of 81.6. 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.

H₀: μ [dropdown box]
 
H₁: μ [dropdown box]

(Type integers or decimals. Do not round.)
Transcribed Image Text: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 706.3. 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 45 high-income individuals and found the sample mean credit score to be 725.6 with a standard deviation of 81.6. 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. H₀: μ [dropdown box] H₁: μ [dropdown box] (Type integers or decimals. Do not round.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 10 images

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up 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 a survey, the mean credit score is 706.3. 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 45 high-income
individuals and found the sample mean credit score to be 725.6 with a standard deviation of 81.6. Conduct the appropriate test to determine if high-income individuals have higher credit scores at the x = 0.05 level of significance.
State the null and alternative hypotheses.
= 706.3
Ho: μ
H₁:µ > 706.3
(Type integers or decimals. Do not round.)
Identify the t-statistic.
to = 1.59 (Round to two decimal places as needed.)
Identify the P-value.
P-value = 0.060 (Round to three decimal places as needed.)
Make a conclusion regarding the hypothesis.
the null hypothesis. There
sufficient evidence to claim that the mean credit score of high-income individuals is
less than
equal to
greater than
Transcribed Image Text: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 706.3. 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 45 high-income individuals and found the sample mean credit score to be 725.6 with a standard deviation of 81.6. Conduct the appropriate test to determine if high-income individuals have higher credit scores at the x = 0.05 level of significance. State the null and alternative hypotheses. = 706.3 Ho: μ H₁:µ > 706.3 (Type integers or decimals. Do not round.) Identify the t-statistic. to = 1.59 (Round to two decimal places as needed.) Identify the P-value. P-value = 0.060 (Round to three decimal places as needed.) Make a conclusion regarding the hypothesis. the null hypothesis. There sufficient evidence to claim that the mean credit score of high-income individuals is less than equal to greater than
Solution
Bartleby Expert
SEE SOLUTION
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman