A government-sponsored organization that was established in 1938 after the Depre

Question

A 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 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 771. A random sample of 30 mortgages recently purchased by the company was selected and it was found that the average credit score was 777 with a sample standard deviation of 30. Complete parts (a) through (c) below. creased as he lending standar s have a. Using -0.02 s there enough evidence rom this sample o conclude at the average credit score Determine the null and alternative hypotheses. Choose the correct answer below. OA. How*771 and H1:=771 O B. Ho : 771 and H1 : > 771 C. Ho : 2771 and H1: 771 OD. Ho: = 771 and H1: 771 Determine the critical value(s) The critical value(s) is(are) Round to three decimal places as needed. Use a comma to separate answers as needed.) Determine the test statistic, t teed

Explanation / Answer

a) The hypothesis would be

H0: u<=771

H1: u>771

Option B is correct

Critical value at 2% level and df = 30-1 = 29 is 2.150

test Statistic t = ((777-771)/30)*Sqrt(30) = 1.095

Conclusion part

Option A is correct

b) P value = P(t>1.095) = 0.141

c) Option A is correct

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