A Fair Isaac Corporation (FICO) score is used by credit agencies such as banks to determine whether to lend money and the interest rate to charge. Its value ranges from 300 to 850 and if you have a...

A Fair Isaac Corporation (FICO) score is used by credit agencies such as banks to determine whether to lend money and the interest rate to charge. Its value ranges from 300 to 850 and if you have a score over 700, you are considered to be a "quality" credit risk. The mean credit score of average income earners in California is estimated by Fair Isaac to be 592. A recent survey of 80 high income earners in California had a mean FICO score of x¯=612 and a standard deviation of s=49. Use a 0.025 significance level to test the claim that the mean FICO score of high income earners in California is at most 592, the mean score of average income earners in California.

Claim:

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p ≠ 592

p ≥ 592

u <>

p ≤ 592

u ≠ 592

u > 592

p = 592

u ≥ 592

u ≤ 592

p > 592

p <>

u = 592

which corresponds to         Select an answer

H1: u > 592

H0: p ≥ 592

H0: u ≤ 592

H0: u = 592

H1: u <>

H0: u ≠ 592

H1: u ≠ 592


Opposite:

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u = 592

u <>

p ≠ 592

p ≤ 592

u ≥ 592

p <>

u > 592

u ≤ 592

p > 592

u ≠ 592

p = 592

p ≥ 592

which corresponds to

Select an answer

H0: u ≤ 592

H0: u ≠ 592

H1: u > 592

H1: u <>

H0: p ≥ 592

H0: u = 592

H1: u ≠ 592




The test is:

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left-tailed

right-tailed

two-tailed


The test statistic is:         (to 3 decimals)


Identify the range of the p-value:

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P-value <>

0.005 < p-value=""><>

0.01 < p-value=""><>

0.025 < p-value=""><>

0.05 < p-value="">< 0.10.1=""><>


Based on this we:

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Reject the null hypothesis

Fail to reject the null hypothesis



Conclusion There

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(Does / does not appear )to be enough evidence to support the claim that the mean FICO score of high income earners in California