STATS 250 Final Exam Solutions | Complete Rated A+ 2023

STATS 250 Final Exam Solutions | Complete Rated A+ 2023. When evaluating loan applicants for approval of a loan, banks examine several aspects of an applicant’s financial history. One aspect that is considered during the loan application process is the applicant’s credit score. We would like to assess if the population mean credit score for successful loan applicants is greater than the population mean credit score for applicants who were denied the loan, H0: µ1 = µ2 versus Ha: µ1 µ2 where µ1 = the population mean credit score for successful loan applicants, µ2 = the population mean credit score for applicants who were denied the loan. Rcmdr numSummary(CreditScore[,"CreditScore"], groups=CreditScore$LoanStatus, Rcmdr+ statistics=c("mean", "sd", "IQR", "quantiles"), quantiles=c(0,.25,.5,.75,1)) mean sd IQR 0% 25% 50% 75% 100% data:n approved 705.2133 36.58063 47..3715 680.1915 712.3087 727.2931 766.7842 100 denied 697.5412 38.28289 52..0369 672.5442 692.2028 725.1461 810.3830 90 Levene's Test for Homogeneity of Variance (center = "mean") Df F value Pr(F) group 1 0.1772 0.6743 188 Two Sample t-test data: CreditScore by LoanStatus t = 1.412, df = 188, p-value = 0.0798 alternative hypothesis: true difference in means is greater than 0 95 percent confidence interval: -1. Inf sample estimates: mean in group approved mean in group denied 705.2133 697.5412 a. Based on the output, provide two reasons why we should report the pooled t-test result (instead of the [4] unpooled or general t-test result). Be specific, that is, include numerical values in your explanations.