Simple random samples of high-interest mortgages and low-interest mortgages were obtained. For the 14 high-interest mortgages,...

Simple random samples of high-interest mortgages and low-interest mortgages were obtained. For the 14 high-interest mortgages, the borrowers had a mean FICO score of 533 and a standard deviation of 35. For the 29 low-interest mortgages, he borrowers had a mean FICO credit score of 562 and a standard deviaiton of 36. 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 .01 significance level.

Claim: Select an answer μ 1 ≥ μ 2 p 1 ≥ p 2 μ 1≠μ 2 μ 1 ≤ μ 2 μ 1 < μ 2 p 1 > p 2 p 1 < p 2 p 1 = p 2 μ 1 = μ 2 μ 1 > μ 2 p 1≠p 2 p 1 ≤ p 2  which corresponds to Select an answer H0: μ 1 ≤ μ 2 H0: p 1 ≤ p 2 H1: p 1 > p 2 H1: p 1≠p 2 H0: μ 1 = μ 2 H1: μ 1 > μ 2 H1: μ 1≠μ 2 H0: μ 1≠μ 2 H1: μ 1 < μ 2 H1: p 1 < p 2

Opposite: Select an answer μ 1 < μ 2 μ 1 ≥ μ 2 μ 1 = μ 2 μ 1 ≤ μ 2 p 1 < p 2 p 1 = p 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 H1: p 1 <= p 2 H0: μ 1 ≤ μ 2 H0: p 1 > p 2 H1: μ 1 > μ 2 H0: μ 1≠μ 2 H1: p 1 = p 2 H0: μ 1 = μ 2 H1: p 1 ≥ p 2 H1: μ 1≠μ 2 H1: μ 1 < μ 2 H0: p 1≠p 2

The test is: Select an answer left-tailed two-tailed right-tailed

The test statistic is: tt = Select an answer -2.949 -2.739 -2.174 -2.522 -2.668

The critical value is: Select an answer  -2.415  -2.933  -2.826  -2.65  -2.979

Based on this we: Select an answer Accept the null hypothesis Fail to reject the null hypothesis Cannot determine anything 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.

Solutions

Expert Solution

orchestra answered 1 year ago

Next > < Previous

Related Solutions

Simple random samples of high-interest mortgages and low-interest mortgages were obtained. For the 35 high-interest mortgages,...

Simple random samples of high-interest mortgages and low-interest mortgages were obtained. For the 35 high-interest mortgages, the borrowers had a mean FICO score of 701 and a standard deviation of 47. For the 29 low-interest mortgages, the borrowers had a mean FICO credit score of 745 and a standard deviation of 21. Test the claim that the mean FICO score of borrowers with high-interest mortgages is different than the mean FICO score of borrowers with low-interest mortgages at the 0.2...

14-1 Suppose interest rates on residential mortgages of equal risk were 8% in California and 10%...

14-1 Suppose interest rates on residential mortgages of equal risk were 8% in California and 10% in New York. Could this differential persist? What forces might tend to equalize rates? Would the same differentials exist in business risk? Why would this differential be different?

A simple random sample of size n=49 is obtained from a population with μ=78 and σ=14....

A simple random sample of size n=49 is obtained from a population with μ=78 and σ=14. (b) What isP (x>81)? (c) What is (P x≤73)? (d) What is P( 76.8 less than x overbar less than 81.2)

Three independent random samples of community college students were obtained to find out how many hours...

Three independent random samples of community college students were obtained to find out how many hours the students spent each week doing math homework outside of the classroom. The samples were made up of students in pre-algebra, elementary algebra, and intermediate algebra. PreAlg ElemAlg InterAlg 1 5 9 0 2 2 1 3 3 1 3 1 2 2 4 2 3 2 2.5 4 3 3 2 5 0.5 4 7 0 3 3 1 3 4 8 a....

Independent simple random samples of 400 Hong Kong women and 380 Macao women were taken. Of...

Independent simple random samples of 400 Hong Kong women and 380 Macao women were taken. Of Hong Kong women, 318 were found to be in the labor force; of the Macao women, 276 were found to be in the labor force. At the 5% significance level, do the data suggest that the labor-force participation rate of Hong Kong women is higher? Use the P-value approach to perform a hypothesis test.

assume that all samples are simple random samples and that all populations are normally distribute. A...

assume that all samples are simple random samples and that all populations are normally distribute. A female Tuna fish have a mean of 316 lbs and a standard deviation of 51lbs a. find probability (4 dp) that 1 randomly-selected adult female tuna weighs between 260lbs and 300 lbs. draw a bell-shaped curve and shade the area corresponding to the probability. b. find the probability (4dp) that a sample of 7 female tuna has a mean weight between 260lbs and 300...

In recent years, due to low interest rates, many homeowners refinanced their home mortgages. Below is...

In recent years, due to low interest rates, many homeowners refinanced their home mortgages. Below is the amount refinanced for 20 loans processed last week. The data are reported in thousands of pounds and arranged from smallest to largest. 59.2 59.5 61.6 65.5 66.6 72.9 74.8 77.3 79.2 83.7 85.6 85.8 86.6 87.0 87.1 90.2 93.3 98.6 100.2 100.7 Question: What is the 26th percentile? (use...

please assume all samples are simple random samples, and all populations are normally distributed. for any...

please assume all samples are simple random samples, and all populations are normally distributed. for any calculator quantity that is to be used in a further calculation involving multiplication division powers or Roots at least four significant figures should be used unless exact at McDonalds a sample of 81 drive-thru customers revealed that there drive through wait time had a mean of 4.87 minutes with standard deviation of .52 minutes a. construct a 95% confidence interval estimate (2 DP) of...

1. In recent years, due to low interest rates, many homeowners refinanced their home mortgages. Linda...

1. In recent years, due to low interest rates, many homeowners refinanced their home mortgages. Linda is mortgage officer at the bank. Below are the amounts refinanced for 20 loans for the last month per $ 1,000's. 34, 60, 61, 66, 66, 73, 75, 77, 79, 83, 85, 86, 87, 87, 90, 93, 93, 100, 125, 130 a) Find the mea, median, 1st quartile, 3rd quartile, and the IQR of the data. ( IQR = 3rd - 1st quartiles )...

In a study of obesity the following results were obtained from samples of males and females...

In a study of obesity the following results were obtained from samples of males and females between the ages of 20 and 75: n Number OverweightMales 150 21 Females 200 48 Can we conclude from these data that in the sampled populations there is a difference in the proportions who are overweight? Let a = .05.

Subjects