Question

A government-sponsored organization that was established in 1938 after the Depression to provide local banks with money from the federal government to be used for residential mortgages in an effort to increase homeownership rates. As lending standards have tightened during the most recent housing market crisis, credit scores for borrowers of approved mortgages have increased. In 2012, the average credit score for loans that were purchased by the company was 796. A random sample of 20 mortgages recently purchased by the company was selected and it was found that the average credit score was 802 with a sample standard deviation of 30. Complete parts (a) through (c) below. a. Using α= 0.01, is there enough evidence from this sample to conclude that the average credit score increased as the lending standards have tightened? Determine the null and alternative hypotheses. Choose the correct answer below. A. Ho: μ#796 and H1 : μ-796 O B. HOP 2796 and H1 : μ < 796 C. Ho : μ 796 and H1 : μ > 796 0 D. HOP-796 and H1 : μ #796 Determine the critical value(s). The critical value(s) is(are) Round to three decimal places as needed. Use a comma to separate answers as needed.) Determine the test statistic, t Round to two decimal places as needed.)

Answer 1