(Use Excel) A recent study found that consumers are m aking average m onthly debt payments o f $983 (Experian.

com, Novem ber 1 1 , 2010). The accompanying table shows a portion o f average debt payments for 26 m etropolitan areas.

The complete data set is on the text website and is labeled Debt Payments.

City Debt Payments Washington, D.C. $1,285 Seattle 1,135

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Pittsburgh 763 Source: www.Experian.com, November 11, 2010.

a. State the null and the alternative hypotheses in order to test whether average monthly debt payments are greater than $900.

b. What assumption regarding the population is necessary to implement this step?

c. Use Excel to calculate descriptive statistics for the data.

Calculate the value of the test statistic.

d. Use Excel's function T.DIST.RT to calculate the p-value.

e. At α = 0.05 what is your conclusion? P-56