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 lower than the cutoff of 720. She finds that a random sample of 60 people had a mean FICO score of 695 with a standard deviation of 65. Can the economist conclude that the mean FICO score is less than 720? Use the a-0.05 level of significance and the P-value method with the TI-84 Plus calculator.
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 lower than the cutoff of 720. She finds that a random sample of 60 people had a mean FICO score of 695 with a standard deviation of 65. Can the economist conclude that the mean FICO score is less than 720? Use the a-0.05 level of significance and the P-value method with the TI-84 Plus calculator.
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
find t value
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Transcribed Image Text: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 lower than the cutoff of 720. She finds
that a random sample of 60 people had a mean FICO score of 695 with a
standard deviation of 65. Can the economist conclude that the mean FICO
score is less than 720? Use the α=0.05 level of significance and the P-value
method with the TI-84 Plus calculator.
Part 1 of 5
(a) State the appropriate null and alternate hypotheses.
Ho: = 720
H₁:μ>720
This hypothesis test is a left-tailed
Alternate Answer:
Ho: μ=720
H₁: μ<720
This hypothesis test is a left-tailed test.
Part: 1 / 5
Part 2 of 5
test.
(b) Compute the value of the test statistic. Round the answer to two
decimal places.
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