A credit union advertises that recipients of their home equity loans have an average credit score of only 690. A skeptical consumer claims that the average credit score of home equity loan holders from this particular credit union is higher than that. She wishes to test this claim at the α = 0.01 level of significance.
Which would be correct hypotheses for this test?
H0: μ ≠ 690, H1: μ = 690
H0: μ = 690, H1: μ > 690
H0: μ = 690, H1: μ ≠ 690
H0: μ = 690, H1: μ < 690
H0: μ < 690, H1: μ = 690
A random sample of 50 loan recipients had an average credit score of 694, with a standard deviation of 5.3.
Find the test statistic (round 2 decimal places):
Give the P-value (round 4 decimal places - if less than 0.001 answer 0):
Which is the correct result:
Reject the Null Hypothesis
Do not Reject the Null Hypothesis
Which would be the appropriate conclusion?
There is not significant evidence to suggest that the average credit score is more than 690
There is significant evidence to suggest that the average credit score is more than 690