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 33 high-income individuals and found the sample mean credit score to be 722.3 with a standard deviation of 80.1. 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.

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 33 high-income individuals and found the sample mean credit score to be 722.3 with a standard deviation of 80.1. 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.

Name: A credit score is used by credit agencies (such as mortgage companies
Uploaded: 2024-03-20T07:07:12.000Z
Channel: Bartleby
Description: 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, witha credit score over 700 considered to be a quality credit risk. According to a survey,

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

In the United States, standardized testing is used to compare students' knowledge retention across the country. States will often use the results of standardized testing to allocate funding to districts within the state. One state in particular wanted to determine whether there was a difference in scores between schools on the eastern side of the state and schools on the western side of the state. A random sample of 30 schools on the eastern side and 35 schools on the western side were chosen. The mean score for the eastern schools was x1 = 109 with a standard deviation of 5.3. The mean score for the western schools was x2 = 104 with a standard deviation of 4.4. We would like to estimate the difference in the mean standardized scores from the eastern schools and western schools and determine the margin of error of this estimate with 98% confidence. (a) Determine the point estimate for the difference in mean standardized scores for the eastern and western sides of the state, ?1 −…
In June, an investor purchased 3000 shares of Oracle (an information technology company) stock at $53 per share. in august, she purchased an additional 400 shares at $42 per share. In November, she purchased an additional 400 shares at $45. What is the weighted mean price per share?
Hurricane Andrew swept through southern Florida causing billions of dollars of damage. Because of the severity of the storm and the type of residential construction used in this semitropical area, there was some concern that the average claim size would be greater than the historical average hurricane claim of $26,000. Several insurance companies collaborated in a data gathering experiment. They randomly selected 24 homes and sent adjusters to settle the claims. In the sample of 24 homes, the average claim was $28,500 with a population standard deviation of $5200. Is there sufficient evidence at a 0.02 significance level to support the claim that the home damage is greater than the historical average? Assume the population of insurance claims is approximately normally distributed. Step 1 of 3: State the null and alternative hypotheses for the test. Fill in the blank below. Ho 26,000 Hoμ Ha H = 26,000
Suggest an appropriate method of data collection (observation v.s experiment; survey vs. simulation ) and A sampling technique for each scenario. Justify Your Answer. A public health official wants to estimate the number of babies who are being born infected with HIV in Washington State.
We determined that - [6(1 - Y2), 0 sy, sY2 s 1, l0, elsewhere, is a valid joint probability density function. (a) Find the marginal density function for Y,. f,(v,) = where Find the marginal density function for Y,. f,(v2) = where (b) Find P( Y, s- Y1 (Enter your probability as a fraction.) (c) Find the conditional density function of Y, given Y, = Y2. (y,\y2) = where
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 standerd deviation of 95, Can the economist conclude that the mean FICO score is greater than 720? Use the a=0.01 level of significance and the P-value method with the T1-B4 Plus calculator. Part 1 of 4 State the appropriate null and altemate hypotheses. H D-0 H: This hypothesis test is a (Choose one) test. left-tailed right-tailed two-tailed
A psychologist wanted to know if students in her class were more likely to cheat if they were low achievers. She divided her 60 students into three groups (low, middle, and high) based on their mean exam score on the previous three tests. She then asked them to rate how likely they were to cheat on an exam if the opportunity presented itself with a very limited chance for consequences. The students rated their desire to cheat on a scale ranging from 1-100, with lower numbers indicating less desire to cheat. Before opening the data, what would you hypothesize about this research question? Open the data set. Before running any statistical analyses, glance through the data. Do you think that your hypothesis will be supported? Conduct descriptive analyses and report them here. Conduct a one-way ANOVA. Report your statistical findings (including any applicable tables in APA format) here. What would you conclude from this analysis? What would be your next steps, if this…
The Transportation Security Administration (TSA) collects data on wait time at each of its airport security checkpoints. For flights departing from Terminal 3 at John F. Kennedy International Airport (JFK) between 3:00 and 4:00 PM on Wednesday, the mean wait time is 12 minutes, and the maximum wait time is 16 minutes. [Source: Transportation Security Administration, summary statistics based on historical data collected between February 18, 2008, and March 17, 2008.]
The Institute of Education Sciences measures the high school dropout rate as the percentage of 16- through 24-year-olds who are not enrolled in school and have not earned a high school credential. Last year, the high school dropout rate was 8.1%. A polling company recently took a survey of 1,000 people between the ages of 16 and 24 and found that 6.5% of them are high school dropouts. The polling company would like to determine whether the dropout rate has decreased. At a 5% significance level, the p-value and α are __________.
Researchers have postulated that, due to differences in diet, Japanese children have a lower proportion of children with high blood cholesterol levels than U.S. children. Suppose that the proportion of high blood cholesterol level of U.S. children is known to be 0.78. Ho: ??:
Thirty-five percent of all Americans drink bottled water more than once a week (Natural resources Defense Council, December 4, 2015). Suppose you have been hired by the Natural Resources Defence Council to investigate bottled water consumption in St. Paul. You plan to select a sample of St. Paulites to estimate the proportion who drink bottled water more than once a week. Assume the popluation proportion of St. Paulites who drink bottled water more than once a week is 0.35 , the same as the overall proportion of Americans who drink bottled water more than once a week. Suppose you select a sample of 540 St. Paulites. Show the sampling distribution of “p with a line over it” (to 4 decimals). E(p with a line over it) = 0` p with a line over it = Based upon a sample of 540 St. Paulites, what is the probability that the sample proportion will be within 0.08 of the population proportion (to 4 decimals). Probability = Suppose you select a sample of 190 St. Paulites. Show the sampling…
A research poll included 1614randomly selected adults who were asked whether "global warming is a problem that requires immediate government action." Results showed that 972 of those surveyed indicated that immediate government action is required. A news reporter wants to determine whether these survey results constitute strong evidence that the majority (more than 50%) of people believe that immediate government action is required. Complete parts (a) through (c) below. a. What is the best estimate of the proportion of adults who believe that immediate government action is required? the best estimate is ?