Question

A​ government-sponsored organization that was established in 1938 after the Depression to provide local banks with money from the federal government to be used for residential mortgages in an effort to increase homeownership rates. As lending standards have tightened during the most recent housing market​ crisis, credit scores for borrowers of approved mortgages have increased. In​ 2012, the average credit score for loans that were purchased by the company was 761. A random sample of 20 mortgages recently purchased by the company was selected and it was found that the average credit score was 769 with a sample standard deviation of 25.

Complete parts​ (a) through​ (c) below.

a.) Using alphaαequals=0.02​, is there enough evidence from this sample to conclude that the average credit score increased as the lending standards have tightened​? Determine the null and alternative hypotheses.

b.)determine the p value

c.)what assumptions needs to be made to perform this analysis?

Answer 1