credit score is used by credit agencies to assess the creditworthiness of individuals. Values range from 300 to 850, with a credit score over
credit score is used by credit agencies to assess the creditworthiness of individuals. Values range from 300 to 850, with a credit score over
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
credit score is used by credit agencies 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 712.8. 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 24 high-income individuals and found the sample mean credit score to be 735.6 with a standard deviation of 74.5. Conduct the appropriate test to determine
if high income individuals have higher credit
Transcribed Image Text:9. A credit score is used by credit agencies 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 712.8. 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 24 high-income individuals and found the sample mean credit
score to be 735.6 with a standard deviation of 74.5. Conduct the appropriate test to determine
if high income individuals have higher credit scores at the a = 0.05 level of significance.
(a) State the null and alternative hypotheses:
Ho:
H₁:
(b) Identify the t-statistic:
to:
(2 decimals)
(c) Identify the P-value:
P-value:
(3 decimals)
(d) The results of the hypothesis test:
(A) Reject the null hypothesis
(B) Fail to reject the null hypothesis
(e) Interpret the results:
(A) There is sufficient evidence to support the claim that the mean credit score of high
income individuals is greater than 712.8.
(B) There is insufficient evidence to support the claim that the mean credit score of high
income individuals is greater than 712.8.
(C) There is sufficient evidence to support the claim that the mean credit score of high
income individuals is equal to 712.8.
(D) There is insufficient evidence to support the claim that the mean credit score of high
income individuals is equal to 712.8.
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