Question

Question Help 10.3.17-T 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 credit score over 700 considered to be a quality credit risk. According to a survey, the mean credit score is 704.8. 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 39 high-income individuals and found the sample me credit score to be 722.7 with a standard deviation of 83.3. Conduct the appropriate test to determine if high-income individuals have higher credit scores at the a=0. level of significance. State the null and alternative hypotheses HoiH V (Type integers or decimals. Do not round.) Enter your answer in the edit fields and then click Check Answer parts remaining Clear All Check Answer

Answer 1

Here the mean credit score is 704.6

and we want to know if high-income individual had higher credit scores

By higher credit scores we want to say credit scores higher than 704.6 (mean)

So, our null and alternative hypothesis will be

$\small H_{0}:\mu=704.6$

$\small H_{1}:\mu>704.6$

[ Here $\small H_{0}$ is null hypothesis and  $\small H_{1}$ is alternative hypothesis ]