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income higher than $48,349. Identify whether each of the following five statements is true or false. The sample is a simple random sample. The population standard deviation is not known. There are no outliers in the sample. The population is normally distributed, or the sample size is large enough. The requirements for a t-test are met. true true false false false Answer Bank false true

income higher than $48,349. Identify whether each of the following five statements is true or false. The sample is a simple random sample. The population standard deviation is not known. There are no outliers in the sample. The population is normally distributed, or the sample size is large enough. The requirements for a t-test are met. true true false false false Answer Bank false true

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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Securitization of mortgages is a process in which banks bundle mortgages and sell them to investors who then bear the risk of default instead of the bank. Atif suspects that securitized mortgages are more likely to be defaulted upon than the mortgages the banks retain. He discovers that mortgages to borrowers with FICO credit scores of 620 or higher are far more likely to be securitized than those with lower FICO scores. Atif then seeks to find evidence that banks are manipulating the FICO credit scores of riskier borrowers to make their mortgages easier to resell. 38 6 40 578 42 44 46 01374 48 464 288289 Atif finds that applicants in 2003 with a FICO score of 620 have an average income of $48,349, but he does 50 not know the population's standard deviation, nor its distribution. 52 56045 54 67786 56 35 58 05 He obtains a simple random sample of 43 mortgage applications with a FICO score of 619. The stem-and-leaf plot to the right shows Atif's sample data, rounded to the nearest hundred. The sample mean is $48,953, and the sample standard deviation is $5,304. Atif wants to use a t-test at an a of 0.05 to test the hypothesis that all borrowers with a FICO score of 619 have an average income higher than $48,349. Identify whether each of the following five statements is true or false. The sample is a simple random sample. The population standard deviation is not known. There are no outliers in the sample. The population is normally distributed, or the sample size is large enough. The requirements for a t-test are met. true true false false false Answer Bank false 14782 230599 true
Transcribed Image Text:Securitization of mortgages is a process in which banks bundle mortgages and sell them to investors who then bear the risk of default instead of the bank. Atif suspects that securitized mortgages are more likely to be defaulted upon than the mortgages the banks retain. He discovers that mortgages to borrowers with FICO credit scores of 620 or higher are far more likely to be securitized than those with lower FICO scores. Atif then seeks to find evidence that banks are manipulating the FICO credit scores of riskier borrowers to make their mortgages easier to resell. 38 6 40 578 42 44 46 01374 48 464 288289 Atif finds that applicants in 2003 with a FICO score of 620 have an average income of $48,349, but he does 50 not know the population's standard deviation, nor its distribution. 52 56045 54 67786 56 35 58 05 He obtains a simple random sample of 43 mortgage applications with a FICO score of 619. The stem-and-leaf plot to the right shows Atif's sample data, rounded to the nearest hundred. The sample mean is $48,953, and the sample standard deviation is $5,304. Atif wants to use a t-test at an a of 0.05 to test the hypothesis that all borrowers with a FICO score of 619 have an average income higher than $48,349. Identify whether each of the following five statements is true or false. The sample is a simple random sample. The population standard deviation is not known. There are no outliers in the sample. The population is normally distributed, or the sample size is large enough. The requirements for a t-test are met. true true false false false Answer Bank false 14782 230599 true
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