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

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Definitions:

Opportunity Costs

This refers to the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Inventory

The complete inventory of products and materials owned by a business, intended for either production or selling.

Net Working Capital

The disparity between a firm's existing assets and its immediate liabilities, showing the company's short-term fiscal stability and efficiency in operations.

Bottom-Up Approach

An investment strategy that starts with the analysis of individual stocks and then proceeds to the broader economy.