Suppose You Have a Random Sample of 21 Credit Scores $\left( \frac { 70 } { \sqrt { 21 } } \right)$

question 9

Multiple Choice

Suppose you have a random sample of 21 credit scores from a population of mortgage applicants with a sample mean of 620 and sample standard deviation of 70, and would like to calculate the 99 percent confidence interval of the population mean credit score. Which of the following would be the correct construction?

• A) 620 ± 2.58 \(\left( \frac { 70 } { \sqrt { 21 } } \right)\)
• B) 620 ± 4 \(\left( \frac { 70 } { \sqrt { 21 } } \right)\) , because 4 is the t-distribution critical value.
• C) 620 ± 4 (70), because 4 is the t-distribution critical value.
• D) None of these choices are correct.

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Definitions:

Social Identity

An individual's sense of who they are based on their group memberships, such as nationality, religion, or social class.

Outgroup

A term denoting any group you do not belong to or identify with, often perceived less favorably than one’s own group (ingroup).

Comparison

The act of evaluating two or more items, people, or situations to identify similarities, differences, or to ascertain superiority.

Uncertainty-Identity Theory

A social psychological theory suggesting that people join and identify with groups in order to reduce feelings of uncertainty about themselves and the world.