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Hypothesis Test The manager of the credit department for an oil company would like to determine whether the average monthly balance of credit card holders is equal to $75. An auditor selects a random sample of 100 accounts and finds that the average owed is $83.40 with a population standard deviation of $28.65. (1) State the Null and Alternative Hypothesis for this test. (ii) Using the Critical Value Approach with a 0.05 level of significance, should the auditor conclude that there is evidence the average balance is different from $75? Tables:Level of Z Za Significance ( a ) NR 108 = 0.1 56 = 0.05 1. 65 1. 28 58 = 0.05 2.58 1.96 1 . 65 28 - 0.02 =0 . 025 2.33 2.05 18 = 0.01 13 = 0. 01 2.58 2.33 0.58-0.005 Z-Values of Commonly used Confidence Level Confidence a Z Level NIR 10% = 0.1 5%=0. 05 1. 65 958 56 = 0.05 2. 51 = 0.025 1. 96 988 28 = 0.02 14 = 0.01 2.33 998 18= 0.01 0. 53 = 0.005 2.58Poisson Distribution Formula P(X = x) = ! where X = 0, 1, 2, 3, ... = mean number of occurrences in the interval e = Euler's constant ~ 2.71828