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According to a money report by a government​ institution, 18-to-20-year-old college students have an average credit...

According to a money report by a government​ institution, 18-to-20-year-old college students have an average credit card balance of $569. A researcher wants to find out if this number is lower now and collects data for a random sample of 40 college students. Their average credit card debt was found to be ​$542 with a sample standard deviation of $67.21.

Complete parts a through b.

a.) Using alphaα=.05​, does this sample provide enough evidence to conclude that the average credit card balance of​ 18-to-20-year-old college students has decreased since​ 2016?

*Determine the null and alternative hypotheses?

*Determine the appropriate critical value. Select the correct choice below.

*Calculate the appropriate test statistic

*State the conclusion, Reject or Accept

b.) Does changing the value of alpha from .05 to .01 affect the conclusion, why?

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Answer #1

We conclude that there is significant evidence against the fact that the average credit card debt has not changed from 2016.

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