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...


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


703.8.

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


40

​high-income individuals and found the sample mean credit score to be


723.1

with a standard deviation of


82.2.

Conduct the appropriate test to determine if​ high-income individuals have higher credit scores at the


α=0.05

level of significance.



Jun 05, 2022
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