A polling organization reported data from a survey of 2000 randomly selected Can

Question

A polling organization reported data from a survey of 2000 randomly selected Canadians who carry debit cards. Participants in this survey were asked what they considered the minimum purchase amount for which it would be acceptable to use a debit card. Suppose that the sample mean and standard deviation were $9.17 and $7.80, respectively. (These values are consistent with a histogram of the sample data that appears in the report.) Do these data provide convincing evidence that the mean minimum purchase amount for which Canadians consider the use of a debit card to be appropriate is less than $10? Carry out a hypothesis test with a significance level of 0.01. (Use a statistical computer package to calculate the P-value. Round your test statistic to two decimal places and your P-value to three decimal places.) p-value State your conclusion. o Reject Ho. We have convincing evidence that the mean minimum purchase amount for which Canadians consider it acceptable to use a debit card is less than $10. O Reject Ho. We do not have convincing evidence that the mean minimum purchase amount for which Canadians consider it acceptable to use a debit card is less than $10. O Do not reject Ho. We do not have convincing evidence that the mean minimum purchase amount for which Canadians consider it acceptable to use a debit card is less than $10. O Do not reject Ho- We have convincing evidence that the mean minimum purchase amount for which Canadians consider it acceptable to use a debit card is less than $10

Explanation / Answer

t= (X'-mu)/(sd/sqrt(n))

here we have X'= sample mean = 9.174 is given

mu = 10$ is the hypothesis under test

sd= 7.8$ given

n= 2000 provided

So., t=(9.17-10)/(7.8/sqrt(2000)) = -4.758811

So., t=-4.758811

so., from t table find p value for t=-4.758811 with df=2000-1 =1999

So., p value = 1.043447e-06 = 0.000001043

So here Ho: mean = 10

Ha: mean<10

we have to check the hypothesis at p value of 0.01 and here our p value 1.043447e-06 is less than 0.01 and so here we reject the null hypothesis

And so we say that the mean is less than 10$. So ans is option B (2nd option)

Hope the above answer has helped you in understanding the proble. Please upvote the ans if it has really helped you. Good Luck!!

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