Suppose Bank of America Would Like to Investigate If the Credit

question 109

Multiple Choice

Suppose Bank of America would like to investigate if the credit score and income level of an individual are independent of one another.Bank of America selected a random sample of 400 adults and asked them to report their credit score range and their income range.The following contingency table presents these results. Based on the critical value approach and using α = 0.01,which of the following the decision and conclusion for this hypothesis test would be?

• A) The test statistic is greater than the critical value;we reject the null hypothesis and cannot conclude that credit score and income are independent of one another.
• B) The test statistic is greater than the critical value;we cannot reject the null hypothesis and can conclude that credit score and income are independent of one another.
• C) The test statistic is less than the critical value;we cannot reject the null hypothesis and cannot conclude that credit score and income are not independent of one another.
• D) The test statistic is less than the critical value;we reject the null hypothesis and cannot conclude that credit score and income are independent of one another.

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Definitions:

Unprepared

The state of not being ready or equipped to deal with a particular task or situation.

Classical Conditioning

An educational process which happens when a stimulus from the environment is linked to a naturally occurring stimulus.

UCS

Unconditioned Stimulus, a stimulus that naturally and automatically triggers a response without prior learning in classical conditioning.

Meat Powder

A substance used by Ivan Pavlov in his classical conditioning experiments as an unconditioned stimulus to elicit salivation in dogs.