Recently, Experian Reported That the Average Credit Score for a New-

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. Which one of the following statements is true?

A) Because the p- value is less than α, we fail to reject the null hypothesis and conclude that the
B) Because the p- value is less than α, we reject the null hypothesis and cannot conclude that the average credit score for a new- car loan is more than 753.
C) Because the p- value is greater than α, we reject the null hypothesis and conclude that the average credit score for a new- car loan is more than 753.
D) Because the p- value is greater than α, we fail to reject the null hypothesis and cannot conclude that the average credit score for a new- car loan is more than 753.