Question

A sample of 64 account balances from a credit company showed an average daily balance of $1,040. The standard deviation of the population is known to be $200. We are interested in determining if the mean of all account balances (i.e., population mean) is significantly different from $1,000.Using the critical value approach at 95% confidence, test the hypotheses.

Answer 1

DATE n = 64 x = $ 1040, 8 = $200 Leo.05 we want to test, Ho: 4 = $ 1000 Hyr et # $ 1000 Test statistic is, Z = x -4 . 10470 - 1000 40 & LIA 25 200 370610- 2= 11.6 2- critical value & l.gr since zrcalculated < Z-critical value (1.6) Clogo) Hence, we fail to reject the null hypothesis. Thus, there is not enough evidence to conclude that the population mean is significantly different from $ 1000 C.Scanned with CamScanner