Suppose You Have a Random Sample of 2,179 Credit Scores $\frac { 620 - 610 } { 70 / \sqrt { 2179 } }$

question 20

Multiple Choice

Suppose you have a random sample of 2,179 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 t-stat for the null hypothesis that the population mean is 610. Which of the following is the correct construction of the t-stat?

• A) \(\frac { 620 - 610 } { 70 / \sqrt { 2179 } }\)
• B) \(\frac { 620 - 610 } { 70 }\)
• C) \(\frac { 620 } { 70 / \sqrt { 2179 } }\)
• D) \(\frac { 610 - 620 } { 70 / \sqrt { 2179 } }\)

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Definitions:

Fixed Incomes

Earnings that do not change over time, such as those from bonds or rents, which provide consistent income but may lose purchasing power over time.

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and analyzing economic data, especially labor market activity, working conditions, and price changes.

Unemployed

The status of being without a paid job but being available for and seeking work.

Unemployment Rate

This term measures the proportion of people without jobs who are actively seeking work in relation to the total workforce.