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:

Public Regulation

The imposition of rules by the government aimed at influencing or controlling certain activities within the economy or society for the general welfare.

Natural Monopolists

Natural monopolists are entities that can provide a good or service at a lower cost than any potential competitor due to economies of scale, making a single provider more efficient than multiple competing ones.

Antitrust Suit

A legal action taken against companies to stop practices that restrain trade, maintain monopolies, or otherwise violate antitrust laws.

Social Regulation

Regulations aimed at protecting public welfare, including health, safety, and the environment, rather than focusing solely on economic efficiency.