11)The Fair Isaac Corporation (FICO) credit score is used by banks and other lenders to determinewhether someone is a good credit risk. Scores range from 300 to 850, with a score of 720or more indicating that a person is a very good credit risk. An economist wants to determinewhether the mean FICO score is lower than the cutoff of 720. She finds that a random sample of50 people had a mean FICO score of 707 with a standard deviation of 79. Can the economistconclude that the mean FICO score is less than 720? Use the 0.01level of significance and the P-value method.(a) State the appropriate null and alternate hypotheses.(b) Compute the value of the test statistic.(c) State a conclusion.

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Answered: 11) The Fair Isaac Corporation (FICO)…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The National Coalition on Healthcare suggests that the mean annual premium that a health insurer charges an employer for a health plan covering a family of four averaged $13,000 in 2009. A sample of 30 families of four yields a mean annual premium paid by their employer to be $13,500 with a sample standard deviation of $300. We are interested in whether the mean annual premium that a health insurer charges an employer for a health plan covering a family of four is different from $13,000 using a significance level of 0.10. Select one: a. tdata = 9.129, do not reject Ho. b. tdata = 9.129, reject Ho. c. tdata = -9.129, do not reject Ho. O d. tdata = 4.156, reject Ho.
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Good credit: 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 more than the cutoff of 720 . She finds that a random sample of 120 people had a mean FICO score of 740 with a standard deviation of 90 . Can the economist conclude that the mean FICO score is greater than 720 ? Use the =α0.01 level of significance and the P -value method with the
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... ... ... ..
Good credit: 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 more than the cutoff of 720. She finds that a random sample of 40 people had a mean FICO score of 760 with a standard deviation of 95. Can the economist conclude that the mean FICO score is greater than 720? Use the a = 0.05 level of significance and the P-value State the appropriate null and alternate hypotheses. Compute the value of the test statistic. Round the answer to at least three decimal places. Input the correct interval for the P-value. Determine whether to reject H0 State a conclusion.

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