Good credit:The Fair Isaac Corporation (FICO) credit score is used by banks and other lenders to determine whether someone is a good creditrisk.Scores range from 300 to 850,with a score of

720

or more indicating that a person is a very good creditrisk.An economist wants to determine whether the mean FICO score is more than the cutoff of 720.

She finds that a random sample of 100 people had a mean FICO score of 737

with a standard deviation of

92

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

720

?Use the =0.01

level of significance and the P-valuemethod with theTI-84Pluscalculator.

Part 1 of 4

State the appropriate null and alternate hypotheses.

H0 : H1 : This hypothesis test is a (Choose one) test. left, right, or two tailed test?

What is the P- value?

What is the critical value of a = 0.01 ?

Do we reject or fail to reject the hypotheses?