Simple random samples of high-interest mortgages and low-interest mortgages were obtained. For the 17 high-interest mortgages, the borrowers had a mean FICO score of 695 and a standard deviation of 20. For the 17 low-interest mortgages, he borrowers had a mean FICO credit score of 713 and a standard deviaiton of 35. Test the claim that the mean FICO score of borrowers with high-interest mortgages is lower than the mean FICO score of borrowers with low-interest mortgages at the .005 significance level. Claim: Select an answer  p 1≠p 2  p 1 = p 2  μ 1 ≥ μ 2  μ 1 < μ 2  μ 1 > μ 2  μ 1≠μ 2  p 1 > p 2  μ 1 = μ 2  μ 1 ≤ μ 2  p 1 ≥ p 2  p 1 ≤ p 2  p 1 < p 2   which corresponds to Select an answer  H0: μ 1 ≤ μ 2  H0: μ 1 = μ 2  H1: μ 1 > μ 2  H1: μ 1≠μ 2  H0: p 1 ≤ p 2  H1: p 1≠p 2  H0: μ 1≠μ 2  H1: p 1 < p 2  H1: p 1 > p 2  H1: μ 1 < μ 2  Opposite: Select an answer  p 1 = p 2  p 1 ≤ p 2  p 1 < p 2  p 1 > p 2  μ 1 ≥ μ 2  p 1 ≥ p 2  μ 1 = μ 2  μ 1≠μ 2  p 1≠p 2  μ 1 ≤ μ 2  μ 1 < μ 2  μ 1 > μ 2   which corresponds to Select an answer  H1: μ 1≠μ 2  H0: μ 1≠μ 2  H1: p 1 = p 2  H0: p 1 > p 2  H1: μ 1 < μ 2  H1: μ 1 > μ 2  H1: p 1 <= p 2  H0: p 1≠p 2  H1: p 1 ≥ p 2  H0: μ 1 ≤ μ 2  H0: μ 1 = μ 2  The test is: Select an answer  left-tailed  right-tailed  two-tailed  The test statistic is: t       =  (to 2 decimals) The critical value is:         (to 3 decimals) Based on this we: Select an answer  Reject the null hypothesis  Cannot determine anything  Accept the null hypothesis  Fail to reject the null hypothesis  Conclusion There Select an answer does / does not  appear to be enough evidence to support the claim that the mean FICO score of borrowers with high-interest mortgages is lower than the mean FICO score of borrowers with low-interest mortgages.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 13PPS
Topic Video
Question
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Simple random samples of high-interest mortgages and low-interest mortgages were obtained. For the 17 high-interest mortgages, the borrowers had a mean FICO score of 695 and a standard deviation of 20. For the 17 low-interest mortgages, he borrowers had a mean FICO credit score of 713 and a standard deviaiton of 35. Test the claim that the mean FICO score of borrowers with high-interest mortgages is lower than the mean FICO score of borrowers with low-interest mortgages at the .005 significance level.

Claim: Select an answer

 p 1≠p 2 

p 1 = p 2 

μ 1 ≥ μ 2 

μ 1 < μ 2 

μ 1 > μ 2

 μ 1≠μ 2 

p 1 > p 2 

μ 1 = μ 2 

μ 1 ≤ μ 2 

p 1 ≥ p 2 

p 1 ≤ p 2 

p 1 < p 2  

which corresponds to Select an answer 

H0: μ 1 ≤ μ 2 

H0: μ 1 = μ 2 

H1: μ 1 > μ 2 

H1: μ 1≠μ 2 

H0: p 1 ≤ p 2 

H1: p 1≠p 2 

H0: μ 1≠μ 2 

H1: p 1 < p 2 

H1: p 1 > p 2 

H1: μ 1 < μ 2 

Opposite: Select an answer 

p 1 = p 2 

p 1 ≤ p 2 

p 1 < p 2

 p 1 > p 2

 μ 1 ≥ μ 2 

p 1 ≥ p 2 

μ 1 = μ 2 

μ 1≠μ 2 

p 1≠p 2 

μ 1 ≤ μ 2 

μ 1 < μ 2 

μ 1 > μ 2  

which corresponds to Select an answer 

H1: μ 1≠μ 2 

H0: μ 1≠μ 2 

H1: p 1 = p 2 

H0: p 1 > p 2

 H1: μ 1 < μ 2 

H1: μ 1 > μ 2 

H1: p 1 <= p 2 

H0: p 1≠p 2

 H1: p 1 ≥ p 2 

H0: μ 1 ≤ μ 2 

H0: μ 1 = μ 2 


The test is: Select an answer 

left-tailed

 right-tailed 

two-tailed 

The test statistic is: t       =  (to 2 decimals)

The critical value is:         (to 3 decimals)

Based on this we: Select an answer 

Reject the null hypothesis 

Cannot determine anything 

Accept the null hypothesis 

Fail to reject the null hypothesis 

Conclusion There Select an answer does / does not  appear to be enough evidence to support the claim that the mean FICO score of borrowers with high-interest mortgages is lower than the mean FICO score of borrowers with low-interest mortgages.

 

 

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