Question
Simple random samples of high interest (8.9%) and low interest (6.3%) mortgages were obtained. For the 40 high-interest mortgages, the borrowers had a mean FICO
Simple random samples of high interest (8.9%) and low interest (6.3%) mortgages were obtained. For the 40 high-interest mortgages, the borrowers had a mean FICO credit score of 594.8 and a standard deviation of 12.2. For the 40 low-interest mortgages, borrowers had a mean FICO credit score of 785.2 and a standard deviation of 16.3.
A. Use an alpha level of 0.01, a left tailed test of hypotheses, and the critical value method to test the claim that the mean FICO score borrowers with a high-interest mortgage are lower than the mean FICO score of borrowers with the low-interest mortgage. B. Repeat all the steps using a 90% confidence level, a two-tailed test of hypotheses, and the p-value method to test the claim that the mean FICO score borrowers with a high interest mortgage is the same as the mean FICO score of borrowers with the low-interest mortgage.
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