Question

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. The company 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

Answer 1

if the null hypothesis is true, the probability of observing a test statistic of 3.34 or greater is 0.001