Blue Text Box: Answer must be typed to either 2 or 3 decimals depending on wheth
ID: 3333511 • Letter: B
Question
Blue Text Box: Answer must be typed to either 2 or 3 decimals depending on whether the Z or t table is appropriate. Please use the tables provided in STAT 3331 (not the tables in the textbook).
Green Text Box: Answer must be typed to four decimals
Purple Text Box: Answer must be chosen from drop down menu
Orange Text Box: Answer must be derived using cell references
TISETC: There is significant evidence to conclude
TINSETC: There is not significant evidence to conclude
According to American Consumer Credit Counseling statistics, credit card debt is the third largest source of household indebt edness. The following data were collected from a random sample of 12 credit cards. (See the example on page 354 of your textbook for a si milar problem.) Credit Card Balance 6,725.00 1,410.00 11,135.00 9,160.00 17,756.00 2,874.00 18,971.00 8,161.00 18,799.00 4,383.00 8,539.00 4,098.00 Question 3A Does the data show the mean credit card balance is less than $5810 at a-0.025? Step 1: Step 2: Step 3: Fill in rovw 106 if the hypothesis is one tailed Reject Ho If Fill in rows 110 if the hypothesis is two tailed The smeller number must be typed first Reject Ho If or Step 4 Step SB Step 6 Step 7 Fill in row 120 if the Z table is appropriate Fill in row 124 if the t table is appropriate. The lower boundary must go on the left and the upper boundary on the right. P-value Question 38 Construct 80% confidence interval for the population mean credit card balance Lower Endpoint Upper Endpoin Question 3C What would the P-value be If this were a two tall hypothesis test? (Mathematically man pulate the P-value from part A to get your ans Fill in row 136 If the 2 table Is appropriate. Fill in row 140 If the ttoble Is appropriate. The lower boundary must go on the left and the upper boundary on the ni ght.Explanation / Answer
Question 3A
Step 1: H0 : >= $ 5810
Ha : < $ 5810
where is the mean average credit card balance.
Step 2: Significance level alpha = 0.025
Step 3: Hypothesis is one tailed.
So reject the null hypothesis if t > t0.025, 11
Step 4 : Sample mean x = $9334.25
Sample standard deviation s = $ 6193.30
Test Statistic
t = (x - )/ (s/ sqrt(n))
t = (9334.25 - 5810)/ (6193.30/ sqrt(12)
t = 3524.25/ 1787.85 = 1.97
critical value of t = t0.025,11 = 2.201
so here t < t0.025,11
so we shall not reject the null hypothesis and can conclude that Mean credit card balance is not less than $ 5810.
P - value is in between 0.05 and 0.025.
3 (C) 80% confidence interval = x +- t0.20, 11 (s/ sqrt(n))
= 9334.25 +- 1.363 * (6193.30/ sqrt(12)
=9334.25 +- 1.363 * 1787.85
= ($6897.40 , $11771.10)
3(c)
P- value is in between 0.10 and 0.05.