Question

4) A credit card watchdog group claims that cardholders in California have more credit card debt than "cardholders in Florida. A random sample of 20 credit card holders from each state are selected. In California, the mean credit card debt was $3400 with a population standard deviation, 0, $950. In Florida, the mean credit card debt was $2900 with a population standard deviation, 62 = $850. Can you support the group's claim? Use a = 0.05. a. Identify the null and alternative hypotheses and label the claim. b. State whether to use a left-tailed test, right-tailed test, or two-tailed test. c. Identify the level of significance. d. Identify the critical value(s) and the rejection region on the graph. Find the standardized test statistic. f. Find the P-value. g. Make a decision. h. Interpret the decision. e.

Answer 1

California Florida nos 90 n = 20 1,$3490 Xa = $2900 o = $ 950 r2 = $850 Apothesis - Ho u, = Mg Null Hypother's Alternate Hypothesis ha: 4, 74, (claim) 5 is. Right tailed test This ☺ level of significance 5% (as =0.05 ) o.os < Rejection Region reali645 known As on Boa are will T- distribution 50.95 P(zzzi )=0.05 P(Z <=c)= 1-gios using z-taube 1.645 rca critical value (2) = 1.645

(e) standardized Test za (,- ) - (44,-40e) o + on the na 7= 3409 - 2900)-0 (950) (8 5033 + go 20 2- 0.997 @ Prvalue= P(za Zrest ) 0-997) P-value = P(Z7 using 7-tarble Prabrea 0.1594 ?- Decision 3) Q: 0.0s Hence, Puclue 72 we Fail to Reject Huld Hypothesis do Hove (4) At d=0.05 evidence to support the not sufficient group's claim that credit card debt than california Howe more Florida,