Question

A credit card company wondered whether giving frequent flyer miles for every purchase would increase card usage, which has a current mean of $2500 per year. They gave free miles to a random sample of 60 credit card customers and found the sample mean to be $2542. The sample standard deviation is $109.

For each of the problems below perform an hypothesis test. State the null and alternative hypothesis, the p-value and your conclusion in context of the problem. Perform each test at a .05 significance.

Answer 1

as p value is less than 0.05 ; we reject null hypothesis and conclude that giving frequent flyer miles for every purchase would increase card usage