Could anyone help me with my homework, and show please show me the steps, Thank
ID: 2929573 • Letter: C
Question
Could anyone help me with my homework, and show please show me the steps, Thank you very much!
According to American Consumer Credit Counseling statistics, credit card debt is the third largest source of household indebtedness. The following data were collected from a random sample of 12 credit cards. (See the example on page 354 of your textbook for a similar problem.) Credit Card Balance 6,022.00 904.00 15,087.00 13,079.00 16,491.00 1,519.00 1,373.00 1,960.00 11,828.00 7,727.00 5,810.00 16,415.00Explanation / Answer
Step1, H0:mu>=3990 (mean credit card balance is atleast $3990) H1:mu<3990 (mean credit card balance is less than $3990)
Step2. For n-1 degrees of freedom [df=n-1], alpha=0.1, the t critical value at alpha/2 (0.05), 11 df is -2.20 (H1 is left tailed)
Step3. Reject H0, if t is >-2.20.
Reject H0, if t is >-2.20 or t< 2.20
Step4. t=(xbar-mu)/(s/sqrt n), where, xbar is sample mean, mu is population mean, s is sample standard deviation, and n is sample size.
From information given, xbar=8185, s=6140, n=12
t=(8185-3990)/(6140/sqrt 12)
=2.37
Step5. Since, 2.37 is not greater than -2.20, fail to reject H0.