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Mathematics, 09.04.2021 02:20 alleshia2007
A major credit card company is interested in whether there is a linear relationship between its internal rating of a customer’s credit risk and that of an independent rating agency. Thecompany collected a random sample of 200 customers and used the data to test the claim that there is a linear relationship. The following hypotheses were used to test the claim.
The test yielded a t -value of 3.34 with a corresponding p -value of 0.001. Which of the following is the correct interpretation of the -value?
a. If the alternative hypothesis is true, the probability of observing a test statistic of 3.34 or greater is 0.001.
b. If the null hypothesis is true, the probability of observing a test statistic at least as extreme as 3.34 is 0.001.
c. If the null hypothesis is true, the probability of observing a test statistic of 3.34 or greater is 0.001This answer is incorrect.
d. If the alternative hypothesis is true, the probability of observing a test statistic at least as extreme as 3.34 is 0.001.
e. If the null hypothesis is true, the probability of observing a test statistic of 3.34 is 0.001.
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