Question

A sample of 20 account balances of a credit company showed an average balance of $1,180 and a standard deviation of $125. You want to determine if the mean of all account balances is significantly greater than $1,150. Assume the population of account balances is normally distributed. Compute the p-value for this test.

Answer 1

Here we have sample size (n) = 20 Sample mean W = 1180 Standard deviationo)=125 Steph's Hypothesis Ho 4: 1150 Hai l> 1150 - This is a right tailed test Step 2:- Test statishics Z a X-M - 1180 – 11.50 7 25TC . 725110 21:07]

Step 3: Pralue Pralce at z = 11.071 Rvalue = P1Z) 1.07) = 1- P1Z5 1.07 = 1-0.857691 from e tandard | normal calculator = 0.14231 =10.14 23 ) Round to Adecimal places

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