Question

When consumers apply for credit, their credit is rated using FICO scores. A random sample of credits ratings is obtained, and the FICO scores are summarized with these statistics:

n = 18, x ̅=660.3, s = 75.9. Use a 0.05 significance level to test the claim that these credit ratings are from a population with a mean that is equal to 700.

1.   Copy and paste the Minitab output for exercise into the document underneath the problem.   You are not also required to do these by hand, unless you want to.  

2. Write the rejection rule word for word as written here, "Reject Ho if the p-value is less than or equal to alpha."

3.   Write the actual p-value and alpha, then either "Reject Ho" or "Do not reject Ho." As an example: 0.0021 ≤ 0.05. True. Reject Ho.

4.    Write an English sentence stating the conclusion, claim, and significance level. As an example: If the claim is "Can we conclude that male business executives are taller, on the average, than the general male population at the  α  = 0.05 level?", and if we found our conclusion to be do not reject Ho, the sentence would be, "There is not enough evidence to conclude that  male business executives are taller, on the average, than the general male population at the  α  = 0.05 level."

Answer 1

q1) uisng minitab

One-Sample T

Test of μ = 700 vs ≠ 700

N Mean StDev SE Mean 95% CI T P
18 660.3 75.9 17.9 (622.6, 698.0) -2.22 0.040

q2)

reject null hypothesis if p avlue lessthan alpha

rejection region (p<=0.05)

q3)

here p value 0.040

0.040<0.05

True ,reject Null hypothesis.

q4)

there is sufficient evidence to support that claim that these credit ratings are from a population with a mean that is equal to 700.