Question
A credit reporting agency claims that the mean credit card debt in a town is greater than $3500. A random sample of the credit card
A credit reporting agency claims that the mean credit card debt in a town is greater than $3500. A random sample of the credit card debt of 20 residents in that town has a mean credit card debt of $3600 and a standard deviation of $391. At =0.10, can the credit agency's claim be supported, assuming this is a normally distributed data set?
Yes, since p-value of 0.13 is greater than 0.10, fail to reject the null. Claim is null, so is supported
No, since p-value of 0.13 is greater than 0.10, reject the null. Claim is null, so is not supported
Yes, since p-value of 0.13 is less than 0.55, reject the null. Claim is alternative, so is supported
No, since p-value of 0.13 is greater than 0.10, fail to reject the null. Claim is alternative, so is not supported
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started