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 2 years ago
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