A credit card company claims that the mean credit card debt for individuals is greater than $4,700. You want to test this claim. You find that a random sample of 27 cardholders has a mean credit card...

A credit card company claims that the mean credit card debt for individuals is greater than $4,700. You want to test this claim. You find that a random sample of 27 cardholders has a mean credit card balance of $4,988 and a standard deviation of $575.

At α=0.01, can you support the claim?

Assume the population is normally distributed.

a. Identify Ho and Ha

b. find the critical values and sket the rejection region

c. calculate the test statistic

d. Do you "reject the Ho" or "fail to reject Ha"?

e. interpret results ( does it support or reject the claim)

Jun 04, 2022

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A credit card company claims that the mean credit card debt for individuals is greater than $4,700. You want to test this claim. You find that a random sample of 27 cardholders has a mean credit card...

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