Question

According to the report by the government-lending institution, college students who have credit cards have an average credit card balance of $1,086. A random sample of 60 college students was selected, and their average credit card debt was found to be $1,440. Assume the standard deviation for student credit card debt is $286. Using a = 0.10, complete parts a and b below. a. Does this sample provide enough evidence to challenge the findings by the lending institution? Determine the null and alternative hypotheses. Ho: H:H

Answer 1

> we have have given claim The report by the goverment - lending institution, college students who have credit Cards have an are credit card balance rage of $41086 Also - given that A random sample of 60 college students was selected, and their and their arerag re credit card debt was found to be $1,440. Assume the standand deriation for student credit card debt is $ 286 he nabo x = $1,440 and or=$286 The null and alternative hypothesis are Hoi la $2,086 220.lo Hii H# $ 1,086 ( This is two tailed test) The malue In statistic is za X-lo rin = 1440-1086 286 1 560 354 286 7.74596669 354 36.922 4412 12 9.58766508 I a 9.5877 ماه

Poralue for given test is paralue a 2x P ( asal Zeal 1) - 2 x pl 23-19.58771 ) = 2X PC2S-9.5877) 2 2 X P-value co conclusies Reject Hoi Ma $1,086 because p-value 20 220 10 Decision There is sufficient enidence conclude that the report by the goverment - lending institutions, college students who have credit cands have an an average credit cand balance $ 1086