Good credit: The Fair Isaac Corporation (FICO) credit score is used by banks and other lenders to determine whether someone is a good credit risk. Scores range from

300

to

850

, with a score of

720

or more indicating that a person is a very good credit risk. An economist wants to determine whether the mean FICO score is lower than the cutoff of

720.

She finds that a random sample of

70

people had a mean FICO score of

705

with a standard deviation of

83

. Can the economist conclude that the mean FICO score is less than

720

? Use the

=0.05

level of significance and the

P

-value method with the TI-84 Plus calculator.

Part: 0 / 5

0 of 5 Parts Complete

Part 1 of 5

(a) State the appropriate null and alternate hypotheses.

H0

:

H1

:

This hypothesis test is a (Choose one) test