Question

Using basic demographic information (age, household income, marital status, etc.), you collect a random sample size 181 customers who accepted a special balance transfer offer from a major credit card company six months ago. The company wants to determine if there is evidence that it would profit by offering the deal to the population of customers with those same demographic characteristics. The sample mean balance transfer amount is 1,690 with a sample standard deviation of 417.

Based on the information above, if the company were to perform a hypothesis test at α = 0.05, what is the largest value it could specify in the null hypothesis and still fail to reject the null hypothesis?

Hint: Think about the relationship between hypothesis tests and intervals. Specifically, think about how a test done at  would relate to a 95% confidence interval?

Answer 1

Tos Given valve Sample mean u=1690 Sample standasd deviation Size 18) T=417 Sample - Given <=0.05 그간 X-ul Z = X-1690 417 1.96 V18) X-1690 = 1.96*417 UTO) X-1690 = 60-7509 X = 60-7509 +1690 x = 175007509 X = 1750.76 CS Scanned with CamScanner

Let me know in the comment section if anything is not clear. I will reply ASAP!

If you like the answer, please give a thumbs-up. This will be quite encouraging for me.Thank-you!