Null Hypothesis H0: Mean amount charged = $2000
Alternative Hypothesis Ha: Mean amount charged > $2000
As, the alternative hypothesis has the greater than sign, it is a right tail test.
Level of significance = 0.025
Standard error of sample mean =
= 84.3
Test statistic , t = (Observed mean - Hypothesized mean) / Standard error = (2177 - 2000) / 84.3 = 2.10
Degree of freedom, df = 100 - 1= 99
For df = 99, P[t > 2.1] = 0.0191
As, p-value is less than the 0.025 level of significance, we reject null hypothesis and conclude there is statistical significance evidence that the Mean amount charged > $2000.
As, we have concluded that mean amount charged is greater than $2000, the monitoring system should be implemented.
16. The Bank of New England is concerned about the amount of debt being accrued by...
ls The Bunk of New England is concerned about the amount of debt being accrued by customers using its credit cards. The Board of directors decided to install an expensive monitoring system if the mean for all of the bank's customers is greater than $2000. The bank randomly selected 100 credit card holders and determined the amounts they charged. For this sample group the mean is S2177 and standard deviation is $843. Use 025 level of significance to test the...
ls The Bunk of New England is concerned about the amount of debt being accrued by customers using its credit cards. The Board of directors decided to install an expensive monitoring system if the mean for all of the bank's customers is greater than $2000. The bank randomly selected 100 credit card holders and determined the amounts they charged. For this sample group the mean is S2177 and standard deviation is $843. Use 025 level of significance to test the...
16. customers monitoring syste bank Th e Bank of New England is concerned about the amount of debt being accrued by using its credit cards. The Board of directors decided to install an expensive m if the mean for all of the bank's customers is greater than $2000. The randomly selected 100 credit card holders and determined the amounts they charged. . For this sample group the mean is $2177 and standard deviation is $843. Use Oz5 level of significance...
16. The Bank of New England is concerned about the amount of debt being accrued by customers using its credit cards. The Board of directors decided to install an expensiv monitoring system if the mean for all of the bank's customers is greater than $2000. Th bank randomly selected 100 credit card holders and determined the amounts the charged. For this sample group the mean is $2210 and standard deviation is $800. U 0.02 level of significance to test the...
US manager of a plant hos. of X, the number of emnt- 15. A machine dispenses a liquid drug deviation of the contents is 54 milliliter containers and the standard deviation for At the 5% level of significance, test the claim that the amounts dispenscu - 8 - ne dispenses a liquid drug into bottles in such a way that the standard I the contents is 54 milliliters. A new machine is tested on a sample of 24 1s and...
Read about Cokes strategy in Africa in the article below and discuss the ethics of selling soft drinks to very poor people. Is this an issue that a company like Coke should consider? Africa: Coke's Last Frontier Sales are flat in developed countries. For Coke to keep growing, Africa is it By Duane Stanford Piles of trash are burning outside the Mamakamau Shop in Uthiru, a suburb of Nairobi, Kenya. Sewage trickles by in an open trench. Across the street,...
CASE 20 Enron: Not Accounting for the Future* INTRODUCTION Once upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant "E" slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm...
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