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

question 13

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 conclusion for this hypothesis test would be that because the test statistic is _________.

• A)less than the critical value, we cannot conclude that the average credit score for a new- car loan is not more than 753
• B)more than the critical value, we cannot conclude that the average credit score for a new- car loan is not more than 753
• C)more than the critical value, we can conclude that the average credit score for a new- car loan is more than 753
• D)less than the critical value, we can conclude that the average credit score for a new- car loan is more than 753

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Definitions:

Marginal Cost

The expense addition due to the manufacture of one more product or service unit.

Average Variable Cost

The total variable costs (e.g., materials, labor) divided by the quantity of output produced, representing the variable cost per unit.

Marginal Cost

The hike in cost associated with the creation of an extra unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity produced, representing the average cost per unit of output.