When consumers apply for credit cards, their credit is rated using FICO scores. A random sample of credit ratings is obtained, and the FICO scores are summarized with these statistics: n=35, ?̅=660.3, s=95.9. Use ?=0.05 and conduct a two-tailed hypothesis test to test the claim that the mean credit score (of the general population) is equal to 700. a) Write the two hypotheses for the problem. b) Which conditions have to be satisfied in order to conduct the test for the population mean? c) Find the t test statistic and associated p-value. d) Make a sketch of the distribution indicating the t test statistic and the p-value. e) In the context of the problem, write a conclusion to the study.
When consumers apply for credit cards, their credit is rated using FICO scores. A random sample of credit ratings is obtained, and the FICO scores are summarized with these statistics: n=35, ?̅=660.3, s=95.9. Use ?=0.05 and conduct a two-tailed hypothesis test to test the claim that the mean credit score (of the general population) is equal to 700. a) Write the two hypotheses for the problem. b) Which conditions have to be satisfied in order to conduct the test for the population mean? c) Find the t test statistic and associated p-value. d) Make a sketch of the distribution indicating the t test statistic and the p-value. e) In the context of the problem, write a conclusion to the study.
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