Answered: Good credit: The Fair Isaac Corporation…

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

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

100

people had a mean FICO score of

710

with a standard deviation of

. Can the economist conclude that the mean FICO score is less than

720

? Use the

=α0.05

level of significance and the critical value method.

Part 1 of 5

Your Answer is correct

(b) Compute the value of the test statistic. Round the answer to at least three decimal places.

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