Hypothesis Testing: Means when o is NOT known Problem#5 15. Credit Scores A Fair Isaac Corporation (FICO) score is used by credit agencies (such as mortgage companies and banks) to assess the creditworthiness of individuals. Its value ranges from 300 to 850. An individual with a FICO score over 700 is considered to be a quality credit risk. According to Fair Isaac Corporation, the mean FICO score is 703.5. 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 40 high-income individuals and found the sample mean credit score to be 714.2 with a stan- dard deviation of 83.2. Conduct the appropriate test to deter- mine if high-income individuals have higher FICO scores at the a= 0.05 level of significance. Answers: Fail to Reject Ho: t(critical) = 1.685, t = 0.813

Database System Concepts
7th Edition
ISBN:9780078022159
Author:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
Publisher:Abraham Silberschatz Professor, Henry F. Korth, S. Sudarshan
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Please help step by step with a explanation for Program R (CS) with a final code for understanding thank you 

Hypothesis Testing: Means when is NOT known
Problem#5
15. Credit Scores A Fair Isaac Corporation (FICO) score is
used by credit agencies (such as mortgage companies and
banks) to assess the creditworthiness of individuals. Its value
ranges from 300 to 850. An individual with a FICO score over
700 is considered to be a quality credit risk. According to Fair
Isaac Corporation, the mean FICO score is 703.5. 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 40 high-income individuals and
found the sample mean credit score to be 714.2 with a stan-
dard deviation of 83.2. Conduct the appropriate test to deter-
mine if high-income individuals have higher FICO scores at
the a = 0.05 level of significance.
Answers: Fail to Reject Ho: t(critical) = 1.685, t = 0.813
Transcribed Image Text:Hypothesis Testing: Means when is NOT known Problem#5 15. Credit Scores A Fair Isaac Corporation (FICO) score is used by credit agencies (such as mortgage companies and banks) to assess the creditworthiness of individuals. Its value ranges from 300 to 850. An individual with a FICO score over 700 is considered to be a quality credit risk. According to Fair Isaac Corporation, the mean FICO score is 703.5. 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 40 high-income individuals and found the sample mean credit score to be 714.2 with a stan- dard deviation of 83.2. Conduct the appropriate test to deter- mine if high-income individuals have higher FICO scores at the a = 0.05 level of significance. Answers: Fail to Reject Ho: t(critical) = 1.685, t = 0.813
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