**Educational Webpage - Statistical Analysis Example on Credit Scores**---### Analysis of Credit Scores by Income Level#### BackgroundA 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. #### Survey DataAccording to a survey, the mean credit score is 700.4. A credit analyst wondered whether high-income individuals (income in excess of $100,000 per year) had higher credit scores. He obtained a random sample of 34 high-income individuals and found the sample mean credit score to be 716.2 with a standard deviation of 81.1. #### Hypothesis TestConduct the appropriate test to determine if high-income individuals have higher credit scores at the α = 0.05 level of significance.1. **State the Hypotheses:** - Null Hypothesis (H0): High-income individuals have a mean credit score less than or equal to 700.4. - Alternative Hypothesis (H1): High-income individuals have a mean credit score higher than 700.4.2. **Identify the P-value:** - P-value = __________ (Round to three decimal places as needed.) 3. **Decision Rule:** - If the P-value is less than α = 0.05, reject the null hypothesis.#### Steps to Compute the P-value: Determine the test statistic and compare it to a standard normal distribution to find the P-value. Utilize statistical software or tables to obtain this value accurately.---**Assistive Options:**- **Help me solve this**: Click to get step-by-step assistance.- **View an example**: Review a similar problem with a detailed solution.- **Get more help**: Access additional resources for deeper understanding.**User Interface Options:**- **Clear all**: Remove all inputs to start fresh.- **Check answer**: Validate your answer and receive feedback.#### Note:Ensure to round your P-value to three decimal places as needed, and remember to carefully follow each step of the statistical testing process. ---By understanding and applying these steps, you can better assess the significance of credit score differences across income levels.---**System Requirements:**- **Operating System**: Windows- **Web Browser**: Compatible with Chrome, Firefox, Edge

Given data : sample size, n =34 sample mean, x̄ = 716.2 sample standard…

Answered: A credit score is used by credit…

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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