Question
In: Statistics and Probability
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 mean credit score to be 723.8 with a standard deviation of 80.7. Conduct the appropriate test to determine if high-income individuals have higher credit scores at the alphaequals0.05 level of significance.
1.State the null an hypotheses
2.identify the t-statistic
3.identify the p-value
Solutions
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 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 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...
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
(such as mortgage companies and banks) to assess the
creditworthiness of individuals. Values range from 300 to 850, with
a FICO score over 700 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...
A Fair Isaac Corporation (FICO) score is used by credit agencies such as banks to determine...
A Fair Isaac Corporation (FICO) score is used by credit
agencies such as banks to determine whether to lend money and the
interest rate to charge. Its value ranges from 300 to 850 and if
you have a score over 700, you are considered to be a "quality"
credit risk. The mean credit score of average income earners in
California is estimated by Fair Isaac to be 664. A recent survey of
47 high income earners in California had a...
The Silverman score is a system that is used to assess the level of respiratory distress...
The Silverman score is a system that is used to assess the level
of respiratory distress of a newborn. The signs of distress
are:
1. Nasal flaring
2. Expiratory grunting
3. Tachypnea
4. Retractions.
Please discuss the following for each distress.
1. Sign
2. Intervention used to correct it.
credit rating agencies
Describe the issue associated with credit rating agencies in the context of the global financial crisis.
Given the issues described in question 1, do you think we need credit rating agencies going forward? Why (not)?
Hedging risk is a very important topic in recent years. Many banks, companies, and agencies have...
Hedging risk is a very important topic in recent years. Many
banks, companies, and agencies have tried utilizing this strategy
to various degrees of success. For a company to reduce its risk by
following hedging strategies, another company must be willing to
assume that risk. This is called speculating. Find at least one
example of a hedging strategy and explain who the speculator is and
what risk they are assuming.
At the beginning of the school year, representatives of credit card companies and banks flock to...
At
the beginning of the school year, representatives of credit card
companies and banks flock to college campuses. Students are often
offered free gifts, student credit cards, free checking accounts
other incentives for opening an account. But students usually have
no credit history that lenders can use as a guide to assess risk.
Why would these financial organizations try so hard to capture
student business?
Which method(s) is(are) the best for banks to assess those loan applications and measure credit risk...
Which method(s) is(are) the best for banks to assess those loan
applications and measure credit risk under economic recession
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