A Fair Isaac Corporation (FICO) score is used by credit agencies such as banks to determine whether to lend money and the interest rate to charge. Its value ranges from 300 to 850 and if you have a score over 700, you are considered to be a "quality" credit risk. The mean credit score of average income earners in California is estimated by Fair Isaac to be 592. A recent survey of 80 high income earners in California had a mean FICO score of x¯=612 and a standard deviation of s=49. Use a 0.025 significance level to test the claim that the mean FICO score of high income earners in California is at most 592, the mean score of average income earners in California. Claim: Select an answer p ≠ 592 p ≥ 592 u < 592 p ≤ 592 u ≠ 592 u > 592 p = 592 u ≥ 592 u ≤ 592 p > 592 p < 592 u = 592 which corresponds to Select an answer H1: u > 592 H0: p ≥ 592 H0: u ≤ 592 H0: u = 592 H1: u < 592 H0: u ≠ 592 H1: u ≠ 592 Opposite: Select an answer u = 592 u < 592 p ≠ 592 p ≤ 592 u ≥ 592 p < 592 u > 592 u ≤ 592 p > 592 u ≠ 592 p = 592 p ≥ 592 which corresponds to Select an answer H0: u ≤ 592 H0: u ≠ 592 H1: u > 592 H1: u < 592 H0: p ≥ 592 H0: u = 592 H1: u ≠ 592 The test is: Select an answer left-tailed right-tailed two-tailed The test statistic is: (to 3 decimals) Identify the range of the p-value: Select an answer P-value < 0.005 0.005 < P-value < 0.01 0.01 < P-value < 0.025 0.025 < P-value < 0.05 0.05 < P-value < 0.10.1 < P-value Based on this we: Select an answer Reject the null hypothesis Fail to reject the null hypothesis Conclusion There Select an answer (Does / does not appear )to be enough evidence to support the claim that the mean FICO score of high income earners in California
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
A Fair Isaac Corporation (FICO) score is used by credit agencies such as banks to determine whether to lend money and the interest rate to charge. Its value ranges from 300 to 850 and if you have a score over 700, you are considered to be a "quality" credit risk. The
Claim:
Select an answer
p ≠ 592
p ≥ 592
u < 592
p ≤ 592
u ≠ 592
u > 592
p = 592
u ≥ 592
u ≤ 592
p > 592
p < 592
u = 592
which corresponds to Select an answer
H1: u > 592
H0: p ≥ 592
H0: u ≤ 592
H0: u = 592
H1: u < 592
H0: u ≠ 592
H1: u ≠ 592
Opposite:
Select an answer
u = 592
u < 592
p ≠ 592
p ≤ 592
u ≥ 592
p < 592
u > 592
u ≤ 592
p > 592
u ≠ 592
p = 592
p ≥ 592
which corresponds to
Select an answer
H0: u ≤ 592
H0: u ≠ 592
H1: u > 592
H1: u < 592
H0: p ≥ 592
H0: u = 592
H1: u ≠ 592
The test is:
Select an answer
left-tailed
right-tailed
two-tailed
The test statistic is: (to 3 decimals)
Identify the
Select an answer
P-value < 0.005
0.005 < P-value < 0.01
0.01 < P-value < 0.025
0.025 < P-value < 0.05
0.05 < P-value < 0.10.1 < P-value
Based on this we:
Select an answer
Reject the null hypothesis
Fail to reject the null hypothesis
Conclusion There
Select an answer
(Does / does not appear )to be enough evidence to support the claim that the mean FICO score of high income earners in California
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