Question
Simple random samples of high-interest mortgages and low-interest mortgages were obtained. For the 21 high-interest mortgages, the borrowers had a mean FICO score of 608
Simple random samples of high-interest mortgages and low-interest mortgages were obtained. For the 21 high-interest mortgages, the borrowers had a mean FICO score of 608 and a standard deviation of 30. For the 36 low-interest mortgages, he borrowers had a mean FICO credit score of 619 and a standard deviaiton of 25. Test the claim that the mean FICO score of borrowers with high-interest mortgages is lower than the mean FICO score of borrowers with low-interest mortgages at the .025 significance level. Claim: Select an answer p 1 = p 2 1 2 1 > 2 p 1 < p 2 p 1 p 2 p 1 > p 2 1 2 p 1 p 2 1 2 1 = 2 1 < 2 p 1p 2 which corresponds to Select an answer H1: p 1 < p 2 H0: 1 2 H1: 1 > 2 H1: p 1p 2 H1: 1 2 H1: p 1 > p 2 H0: 1 2 H1: 1 < 2 H0: 1 = 2 H0: p 1 p 2 Opposite: Select an answer 1 2 1 > 2 p 1p 2 p 1 p 2 p 1 = p 2 p 1 p 2 1 = 2 1 2 1 2 1 < 2 p 1 > p 2 p 1 < p 2 which corresponds to Select an answer H1: 1 > 2 H0: 1 2 H0: p 1p 2 H0: 1 2 H1: p 1 <= p 2 H0: p 1 > p 2 H1: p 1 = p 2 H1: 1 < 2 H0: 1 = 2 H1: 1 2 H1: p 1 p 2 The test is: Select an answer right-tailed left-tailed two-tailed The test statistic is: tt = (to 2 decimals) The critical value is: (to 3 decimals) Based on this we: Select an answer Fail to reject the null hypothesis Reject the null hypothesis Accept the null hypothesis Cannot determine anything Conclusion There Select an answer does not does appear to be enough evidence to support the claim that the mean FICO score of borrowers with high-interest mortgages is lower than the mean FICO score of borrowers with low-interest mortgages.
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