A recent study found that consumers are making average monthly debt payments of
ID: 3299345 • Letter: A
Question
A recent study found that consumers are making average monthly debt payments of $983 (Experian.com, November 11, 2010). The accompanying table shows the average debt payments for 26 metropolitan areas. a. Select the null and the alternative hypotheses in order to test whether average monthly debt payments are greater than $900. H_0: mu lessthanorequalto 900: H_A: mu > 900 b. What assumption regarding the population is necessary to implement this step? normally distributed Use Excel to calculate the value of the test statistic. (Round your answer to 2 decimal places.) Test statistic .00 Use Excel to calculate the exact p-value. (Round your answer to 4 decimal places.) p-value 0.0011 At alpha = 0.05 what is your conclusion? Reject H_0: the average monthly debt payments are greater than $900.Explanation / Answer
c1) t value is 3.41
it is a one tailed test
When you perform a hypothesis test in statistics, a p-value helps you determine the significance of your results. ... The p-value is a number between 0 and 1 and interpreted in the following way: A small p-value (typically 0.05) indicates strong evidence against the null hypothesis, so you reject the null hypothesis.