Question

Quesdon Help 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 709.1. 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 37 high-income individuals and found the sample mean credit score to be 720.7 with a standard deviation of 84.6. Conduct the appropriate test to determine if high-income individuals have higher credit scores at the a=0.05 level of significance State the null and alternative hypotheses HH H: (Type integers or decimals. Do not round.) Identify the t-statistic to Round to two decimal places as needed.) Identify the P-value P-value-Round to three decimal places as needed.) Make a conclusion regarding the hypothesis the null hypothesis. There sufficient evidence to claim that the mean credit score of high-income individuals is

Answer 1

Below are the null and alternative Hypothesis,
Null Hypothesis, H0: μ = 709.1
Alternative Hypothesis, Ha: μ > 709.1

Test statistic,
t = (xbar - mu)/(s/sqrt(n))
t = (720.7 - 709.1)/(84.6/sqrt(37))
t = 0.83

P-value Approach
P-value = 0.206
As P-value >= 0.05,

fail to reject null hypothesis.There is not sufficient evidence to claim that the mean credit score is higher