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

706.6.

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

34

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

721.8

with a standard deviation of

83.6.

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

=0.05

level of significance.

State the null and alternative hypotheses.

H0:

not equals

greater than>

less than<

equals=

H1:

less than<

not equals

greater than>

equals=

(Type integers or decimals. Do not round.)

Identify the t-statistic.

t0=enter your response here

(Round to two decimal places as needed.)

Part 3

Identify the P-value.

P-value=enter your response here

(Round to three decimal places as needed.)

Part 4

Make a conclusion regarding the hypothesis.

Reject

Fail to reject

the null hypothesis. There

is not

is

sufficient evidence to claim that the mean credit score of high-income individuals is

equal to

greater than

less than