Question
In: Statistics and Probability
A credit score is used by credit agencies ( such as mortgage companies and banks) to...
A credit score is used by credit agencies ( such as mortgage companies and banks) to assess the credit worthiness of individuals. Values range from 300 to 850, with a credit score over 700 considered to be a quality credit risk. According to a survey, the mean credit score is 707.8 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 41 high income individuals and found the sample mean credit score to be 726.1 with a standard deviation of 82.6 Conduct the appropriate test to determine if high income individuals have higher credit scores at the 0.05 level of significance. Identify the P-value and accept or reject the null.
Solutions
Expert Solution
P value= 0.0819
As p value > alpha
We fail to reject H0.
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orchestra answered 1 year agoRelated Solutions
A credit score is used by credit agencies (such as mortgage companies and banks) to assess...
A credit score is used by credit agencies (such as mortgage
companies and banks) to assess the creditworthiness of
individuals. Values range from 300 to 850, with a credit score
over 700 considered to be a quality credit risk. According to a
survey, the mean credit score is 700.9. 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
41 high-income individuals and found the sample...
A credit score is used by credit agencies (such as mortgage companies and banks) to assess...
A credit score is used by credit agencies (such as mortgage
companies and banks) to assess the creditworthiness of
individuals. Values range from 300 to 850, with a credit score
over 700 considered to be a quality credit risk. According to a
survey, the mean credit score is 706.2. 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
42 high-income individuals and found the sample...
A credit score is used by credit agencies (such as mortgage companies and banks) to assess...
A credit score is used by credit agencies (such as mortgage
companies and banks) to assess the creditworthiness of
individuals. Values range from 300 to 850, with a credit score
over 700 considered to be a quality credit risk. According to a
survey, the mean credit score is 705.9. 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
39 high-income individuals and found the sample...
A Fair Isaac Corporation (FICO) score is used by credit agencies (such as mortgage companies and...
A Fair Isaac Corporation (FICO) score is used by credit agencies
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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...
A Fair Isaac Corporation (FICO) score is used by credit agencies such as banks to determine...
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