government-sponsored organization that was established in 1938 after the Depress

Question

government-sponsored organization that was established in 1938 after the Depression to provide local banks with money from the federal government to be used for A residential mortgages in an effort to increase homeownership rates. As lending standards have tightened during the most recent housing market crisis, credit scores for borrowers of approved mortgages have increased. In 2012, the average credit score for loans that were purchased by the company was 752. A random sample of 30 mortgages recently purchased by the company was selected and it was found that the average credit score was 756 with a sample standard deviation of 20 Complete parts (a) through (c) below a. Using o 0.02, is there enough evidence from this sample to conclude that the average credit score increased as the lending standards have tightened? Determine the null and alternative hypotheses. Choose the correct answer below. O A. Ho: us 752 and H1: u 752 O B. Ho: H-752 and H1: 752 O C. Ho: 752 and H1: us 752 O D. Ho: H 752 and H1: u 752

Explanation / Answer

1.Here we need to check that average credit score increased

So H1: mu>752

Hence answer is H0:mu<=752 vs H1:mu>752 so A is answer

2. For second it is required to check whether changed

So answer is B

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