Question
A credit card company claims that the mean credit card debt for individuals is greater than $5,000. You want to test this claim. You find
A credit card company claims that the mean credit card debt for individuals is greater than $5,000. You want to test this claim. You find that a random sample of 34 cardholders has a mean credit card balance of $5,100 and a standard deviation of $675. At =0.10, can you support theclaim? Complete parts(a) through(e) below. Assume the population is normally distributed.
(a) Write the claim mathematically and identify H0 and Ha.
(b) Find the criticalvalue(s) and identify the rejectionregion(s). round to 3 decimal places
(c) Find the standardized test statistic t.
(d) Decide whether to reject or fail to reject the null hypothesis.
(e) Interpret the decision in the context of the original claim.
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