Question

It is often useful for companies to know who their customers are and how they became customers. A credit card company is interested in whether the owner of the card applied for the card on his or her own or was contacted by a telemarketer. The company obtained the following sample information regarding end-of-the-month balances for the two groups (assume population standard deviations are not the same):

Applied: mean = $1,568 st.dev = $356 n=10

Contacted: mean = $1,967 st. dev = $857 n=8

Is it reasonable to conclude the mean balance is larger for the credit card holders that were contacted by telemarketers than for those who applied on their own for the card? Level of significance is .05.State the null and alternate hypothesis so that, if the null is rejected, we can conclude that balances for the contacted customers is greater than those of the applied customers. Is it reasonable to conclude the mean balance is larger for the credit card holders that were contacted by telemarketers than for those who applied on their own for the card? Level of significance is .05.State the null and alternate hypothesis so that, if the null is rejected, we can conclude that balances for the contacted customers is greater than those of the applied customers.

Question 1 options:

A. Null: contacted population mean = applied population meal Alternate: contacted population mean Not Equal to applied population mean

B. Null: contacted population mean ≥ applied population mean Alternate: contacted population mean < applied population mean

C. Null: contacted population mean ≤ applied population mean Alternate: contacted population mean > applied population mean

D. None of the above

Answer 1

Option - C) Null : contacted population mean < applied population mean.

                  Alternate : contacted population mean > applied population mean