A credit score is used by credit agencies(such as mortgage companies andbanks) to assess the creditworthiness of individuals. Values range from 300 to850, with a credit score over 700 considered to be a quality credit risk. According to asurvey, the mean credit score is 705.8. A credit analyst wondered whetherhigh-income individuals(incomes in excess of$100,000 peryear) had higher credit scores. He obtained a random sample of 42 high-income individuals and found the sample mean credit score to be 722.4 with a standard deviation of 80.5. Conduct the appropriate test to determine ifhigh-income individuals have higher credit scores at the =0.05 level of significance.

State the null and alternative hypotheses.

H0:

greater than

>

equals

=

not equals

less than

<

nothing

H1:

less than

<

greater than

>

equals

=

not equals

nothing

(Type integers or decimals. Do notround.)

Identify thet-statistic.

t0=

nothing

(Round to two decimal places asneeded.)

Identify theP-value.

P-value=

nothing

(Round to three decimal places asneeded.)

Make a conclusion regarding the hypothesis.

Reject

Fail to reject

the null hypothesis. There

is

is not

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

equal to

less than

greater than

nothing

.