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 = $1,568st.dev = $356n=10

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

Equation 10.8 (or the t-test for two samples of unequal variance in excel) gives the t-value between the two samples as -1.234. Comparing this to the critical value, you conclude:

Question 4 options:

Reject the null, the contact mean balance of contacted customersis significantly lessthan the mean balance of the applied customers.

Reject the null, the mean balance of contacted customersis significantly greaterthan the mean balance of the applied customers.

Donotreject the null, the mean balance of contacted customersis not significantly greaterthan the mean balance of the applied customers.

None of the above.