Question

In a study entitled “How Undergraduate Students Use Credit Cards”, it was reported that a sample of 1000 undergraduate students have a mean credit card balance of $3173. This figure was an all-time high and had increased 44% over the previous five years. Assume that a current study is being conducted to determine if it can be concluded that the mean credit card balance for undergraduate students has changed compared to the original report. Based on previous studies, use a population standard deviation of $1000.

a) State the null and alternative hypotheses (5 points)

b) What is the Type I error in this situation? What are the consequences of making this error? (5 points)

c) The new study finds that in a sample of 100 students, the mean credit card balance was $3325. Compute the p-value of the test statistics testing whether there is a significant difference between the first and second study. (5 points)

d) Using a 5% level of significance, can we reject the null hypothesis? Explain your answer and the rejection criteria used. (5 points)

e) Using a 1% level of significance, can we reject the null hypothesis? Explain your answer and the rejection criteria used. (5 points)

Answer #1

In a study entitled How Undergraduate Students Use Credit Cards,
it was reported that undergraduate students have a mean credit card
balance of $3,173 (Sallie Mae, April 2009). This figure was an
all-time high and had increased 44% over the previous five years.
Assume that a current study is being conducted to determine if it
can be concluded that the mean credit card balance for
undergraduate students has continued to increase compared to the
April 2009 report. Based on previous...

Question 10. In a study entitled how undergraduate Students use
credit cards, it was reported that undergraduate students have a
mean credit card balance of $3173. This figure was an all-time high
and had increased 44% over the previous five years. assume that a
current study is being conducted to determine if it can be
concluded that the mean credit card balance for undergraduate
students has continued to increase compared to the original report.
based on previous studies, use a...

In a study entitled How Undergraduate Students Use Credit Cards,
it was reported that undergraduate students have a mean credit card
balance of $3,316 . This figure was an all-time high and had
increased 49% over the previous five years. Assume that a current
study is being conducted to determine if it can be concluded that
the mean credit card balance for undergraduate students has
continued to increase compared to the report. Based on previous
studies, use a population standard...

In a study entitled How Undergraduate Students Use Credit Cards,
it was reported that undergraduate students have a mean credit card
balance of $3,173. This figure was an all-time high and had
increased 44% over the previous five years. Assume that a current
study is being conducted to determine if it can be concluded that
the mean credit card balance for undergraduate students has
continued to increase compared to the original report. Based on
previous studies, use a population standard...

In a study about
undergraduate student credit card usage, it was reported that
undergraduate students have a mean credit card balance of $3173
(Sallie Mae, April 2009). This figure was an all-time high and had
increased 44% over the previous five years. Assume that a current
study is being conducted to determine if it can be concluded that
the mean credit card balance for undergraduate students has
continued to increase compared to the April 2009 report. Based on
previous studies,...

In a study entitled “How Much Undergraduate Students Drink”, it was
reported that undergraduate students spend $868. This figure was an
all-time high and had increased 44% over the previous five years.
Assume that a current study is being conducted to determine if it
can be concluded that the expenditure of students on alcohol has
continued to increase compared to the original report. Based on
previous studies, use a population standard deviation of $400.
1. State the Null and alternative...

In a study about undergraduate student credit card usage, it was
reported that undergraduate students have a mean credit card
balance of $3173 (Sallie Mae, April 2009). This figure was an
all-time high and had increased 44% over the previous five years.
Assume that a current study is being conducted to determine if it
can be concluded that the mean credit card balance for
undergraduate students has continued to increase compared to the
April 2009 report. Based on previous studies,...

Instructions: Round all your math steps to two decimal places
just like I have been doing in class.
In a study entitled How Undergraduate Students Use Credit Cards,
it was reported that undergraduate students have a mean credit card
balance of $3,173 (Sallie Mae, April 2009). This figure was an
all-time high and had increased 44% over the previous five years.
Assume that a current study is being conducted to determine if it
can be concluded that the mean credit...

A national measure of religiosity is measured for all
undergraduate students who attend private religious based
universities in the United States. The scores are approximately
normally distributed with a mean of 80 and a standard deviation of
10. Seton Hill University measured an incoming freshman class (300
students) to identify if the religiosity of SHU students is
significantly different from that of the entire private religious
based university undergraduate student population. In the SHU
freshman class a sample mean of...

A sample of 64 account balances from a credit company showed an
average daily balance of $1145.
The standard deviation of the population is
known to be $200. We are interested in determining if the mean of
all account balances (i.e., population mean) is significantly
different from $1100. (In other words, we are testing the Null
Hypothesis that the mean account balance for the population is
$1100)
Which of the following is true
The Null Hypothesis cannot be rejected at...

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