Recently, Experian Reported That the Average Credit Score for a New-

question 137

Multiple Choice

Recently, Experian reported that the average credit score for a new- car loan was 753. Suppose Ally Financial, a bank holding company that finances car loans, would like to test the hypothesis that the average credit score has increased since the Experian report. A random sample of 20 new- car loans had an average credit score of 764.2 with a sample standard deviation of 34.5. Ally Financial would like to set α = 0.05. The critical value for this hypothesis test would be _______.

• A)1.729
• B)1.282
• C)2.080
• D)2.977

---

Definitions:

Interpret Observations

The process of explaining or finding the meaning in the data, actions, or events that one notices or records.

Summarise Observations

The process of briefly describing the main points or significant details noted during an examination or study.

Median

A measure of central tendency that divides a data set into two equal halves by finding the value in the middle when the data is organized in ascending or descending order.

Mean

A statistical measure that represents the average value of a set of numbers.