The Equal Credit Opportunity Act Makes It Illegal for a Creditor

question 289

True/False

The Equal Credit Opportunity Act makes it illegal for a creditor to take into account whether or not the person applying for credit receives public benefits (welfare).

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Definitions:

Critical Value

A threshold value that defines the boundary of the critical region, where if the test statistic exceeds this value, the null hypothesis is rejected.

Alpha

A threshold value used in hypothesis testing that represents the level of significance, typically set at 0.05 or 0.01, indicating the probability of wrongly rejecting the null hypothesis.

Chi-square Statistic

A statistical measure used to determine if there is a significant relationship between two categorical variables.

Degrees of Freedom

The number of independent values or quantities that can vary in the calculation of a statistic.