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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
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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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. X olo
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. X olo
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