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Good credit: The Fair Isaac Corporation (FICO) credit score is used by banks and other lenders to determine whether someone is a good credit risk. Scores range from 300 to 850, with a score of 720 or more indicating that a person is a very good credit risk. An economist wants to determine whether the mean FICO score is more than the cutoff of 720. She finds that a random sample of 85 people had a mean FICO score of 750 with a standard deviation of 95. Can the economist conclude that the mean FICO score is greater than 720? Use the a= 0.05 level of significance and the P-value method and Excel. (a) State the appropriate null and alternate hypotheses. Ho: H₁ : This hypothesis test is a (Choose one) ▼ test. left tailed right-tailed two tailed

Good credit: The Fair Isaac Corporation (FICO) credit score is used by banks and other lenders to determine whether someone is a good credit risk. Scores range from 300 to 850, with a score of 720 or more indicating that a person is a very good credit risk. An economist wants to determine whether the mean FICO score is more than the cutoff of 720. She finds that a random sample of 85 people had a mean FICO score of 750 with a standard deviation of 95. Can the economist conclude that the mean FICO score is greater than 720? Use the a= 0.05 level of significance and the P-value method and Excel. (a) State the appropriate null and alternate hypotheses. Ho: H₁ : This hypothesis test is a (Choose one) ▼ test. left tailed right-tailed two tailed

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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Good credit: The Fair Isaac Corporation (FICO) credit score is used by banks and other lenders to determine whether someone is a good credit risk. Scores range from 300 to 850, with a score of 720 or more indicating that a person is a very good credit risk. An economist wants to determine whether the mean FICO score is more than the cutoff of 720. She finds that a random sample of 85 people had a mean FICO score of 750 with a standard deviation of 95. Can the economist conclude that the mean FICO score is greater than 720? Use the α = 0.05 level of significance and the P-value method and Excel. (a) State the appropriate null and alternate hypotheses. Ho: H₁: This hypothesis test is a (Choose one) test. left tailed right-tailed two tailed
Transcribed Image Text:Good credit: The Fair Isaac Corporation (FICO) credit score is used by banks and other lenders to determine whether someone is a good credit risk. Scores range from 300 to 850, with a score of 720 or more indicating that a person is a very good credit risk. An economist wants to determine whether the mean FICO score is more than the cutoff of 720. She finds that a random sample of 85 people had a mean FICO score of 750 with a standard deviation of 95. Can the economist conclude that the mean FICO score is greater than 720? Use the α = 0.05 level of significance and the P-value method and Excel. (a) State the appropriate null and alternate hypotheses. Ho: H₁: This hypothesis test is a (Choose one) test. left tailed right-tailed two tailed
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(b) Compute the value of the test statistic. Round the answer to at least three decimal places. t = X
Transcribed Image Text:(b) Compute the value of the test statistic. Round the answer to at least three decimal places. t = X
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