Question

A bank found that in recent years, the average monthly charge on its credit card was $1 comma 300. With an improving economy, they suspect that this amount has increased. A sample of 45 customers resulted in an average monthly charge of $1 comma 326.61 with a standard deviation of $183.36. Do these data provide statistical evidence that the average monthly charge has increased? Formulate the appropriate hypothesis test and draw a conclusion. Use a level of significance of 0.05. Is there sufficient evidence at the 0.05 level of significance that the average monthly charge has increased? Determine the null hypothesis, H0, and the alternative hypothesis, H1.

Compute the test statistic.

Using a level of significance of 0.05, what is the critical value?

Find the p-value for the test.

What is your conclusion?

Answer #1

from above:

for hypothesis:

null hypothesis: HO: μ | = | 1300 | |

Alternate Hypothesis: Ha: μ | > | 1300 |

test statistic =0.974

at level of significance of 0.05,the critical value =1.680

p-value for the test =0.1678

Conclusion: since p value > 0.05 ., we fail to reject the null hypothesis

we do not have have sufficient evidence to conclude that average monthly charge has increased |

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