Consumers with at least one credit card have a mean of 4.84 credit cards. [Source: Sumit...
Consumers with at least one credit card have a mean of 4.84 credit cards. [Source: Sumit Agarwal, John C. Driscoll, Xavier Gabaix, and David Laibson, “Learning in the Credit Card Market,” Working Paper 13822, National Bureau of Economic Research (NBER), February 2008.] You want to test the hypothesis that the mean number of credit cards held by high-income consumers (consumers with annual incomes over $100,000) is different from the reported mean of 4.84. A random sample of 100 high-income consumers provides a sample mean number of credit cards of x̄ = 5.78. Use a significance level of α = 0.01 for the test. Use a confidence interval estimate approach to conduct the hypothesis test.
To use a confidence interval estimate approach to conduct the hypothesis test, you construct the______ confidence interval estimate of the population mean.
Assume that the population standard deviation is known and equal to 3.56, the standard deviation from the NBER study.
The confidence interval estimate is_____to_____
Since the confidence interval estimate_______ ,_____ ,the null hyp(that the mean number of credit cards held by high-income consumers is 4.84) is ____.
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Consumers with at least one credit card have a mean of 4.84
credit cards. [Source: Sumit...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
a normal distribution has u=20 and o=4 ttempts: Average: 14 Aa Aa 5. Computing a confidence...
a normal distribution has u=20 and o=4
ttempts: Average: 14 Aa Aa 5. Computing a confidence interval Consumers with at least one credit card have a mean of 484 credit cards. [Source: Argawal, S., Driscoll, J. Gabaix, ?., & Laibson, D. (February, 2008), Learning in the creditcard market (Working Paper i 3822), National Bureau of Economic Research (NBER).] A social psychologist wants to estimate how much having a high income (an annual income over $100,000) changes the number of credit...
2. Hypothesis tests about a population mean, population standard deviation known Lenders tighten or loosen their...
2. Hypothesis tests about a population mean, population standard deviation known Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be extended credit...
3. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or...
3. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is his credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
5. Testing the population mean when the population standard deviation is known Lenders tighten or loosen...
5. Testing the population mean when the population standard deviation is known Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be extended...
In a sample of credit card holders the mean monthly value of credit card purchases was...
In a sample of credit card holders the mean monthly value of credit card purchases was $ 400 and the sample variance was 67 ($ squared). Assume that the population distribution is normal. Answer the following, rounding your answers to two decimal places where appropriate. (a) Suppose the sample results were obtained from a random sample of 12 credit card holders. Find a 95% confidence interval for the mean monthly value of credit card purchases of all card holders. ( , )...
1. In 1991 the average interest rate charged by U.S. credit card issuers was 18.8 percent....
1. In 1991 the average interest rate charged by U.S. credit card issuers was 18.8 percent. A financial officer wishes to study whether the increased competition in the credit card business has reduced interest rates. To do this, the officer will test a hypothesis about the current mean interest rate, , charged by all U.S. credit card issuers. To perform the hypothesis, the officer randomly selects n = 15 credit cards and obtains the sample mean interest rate 16.8 percent...
Homework problem help. Step by Step According to American Consumer Credit Counseling statistics, credit card debt...
Homework problem help. Step by Step
According to American Consumer Credit Counseling statistics, credit card debt is the third largest source of household indebtedness. The following data were collected from a random sample of 12 credit cards. (See the example on page 359 of your textbook for a similar problem.) 7.444.17 5093.77586 Credit Card Balance 11.497.00 sample mean 1.931.00 rampledov 6,326.00 1,805.00 10,807.00 9.328.00 13,256.00 6.11.00 6,434.00 2,423,00 1,474.00 17,178.00 3.131125257 Quartion 2A Can you conclude the mean credit card...
Credit card fraud is fraud perpetrated through stolen credit cards or credit card information. For years, credit card issuers have been using data mining and statistical tools to detect fraud. Citiba...
Credit card fraud is fraud perpetrated through stolen credit cards or credit card information. For years, credit card issuers have been using data mining and statistical tools to detect fraud. Citibank reported that knowing the type of product or service bought, frequency of purchases, and size and location of transaction can significantly reduce fraud. (Source: Jesus Mena, Investigative Data Mining for Security and Criminal Detection, Butterworth-Heinemann, pp. 250-251) A data-mining analyst at a major credit card company would like to...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
2. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
a normal distribution has u=20 and o=4
ttempts: Average: 14 Aa Aa 5. Computing a confidence interval Consumers with at least one credit card have a mean of 484 credit cards. [Source: Argawal, S., Driscoll, J. Gabaix, ?., & Laibson, D. (February, 2008), Learning in the creditcard market (Working Paper i 3822), National Bureau of Economic Research (NBER).] A social psychologist wants to estimate how much having a high income (an annual income over $100,000) changes the number of credit...
3. Hypothesis tests about a population mean, population standard deviation known Aa Aa Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is his credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be...
5. Testing the population mean when the population standard deviation is known Lenders tighten or loosen their standards for issuing credit as economic conditions change. One of the criteria lenders use to evaluate the creditworthiness of a potential borrower is her credit risk score, usually a FICO score. FICO scores range from 300 to 850. A consumer with a high FICO score is perceived to be a low credit risk to the lender and is more likely to be extended...
1. In 1991 the average interest rate charged by U.S. credit card issuers was 18.8 percent. A financial officer wishes to study whether the increased competition in the credit card business has reduced interest rates. To do this, the officer will test a hypothesis about the current mean interest rate, , charged by all U.S. credit card issuers. To perform the hypothesis, the officer randomly selects n = 15 credit cards and obtains the sample mean interest rate 16.8 percent...
Homework problem help. Step by Step
According to American Consumer Credit Counseling statistics, credit card debt is the third largest source of household indebtedness. The following data were collected from a random sample of 12 credit cards. (See the example on page 359 of your textbook for a similar problem.) 7.444.17 5093.77586 Credit Card Balance 11.497.00 sample mean 1.931.00 rampledov 6,326.00 1,805.00 10,807.00 9.328.00 13,256.00 6.11.00 6,434.00 2,423,00 1,474.00 17,178.00 3.131125257 Quartion 2A Can you conclude the mean credit card...
Credit card fraud is fraud perpetrated through stolen credit cards or credit card information. For years, credit card issuers have been using data mining and statistical tools to detect fraud. Citibank reported that knowing the type of product or service bought, frequency of purchases, and size and location of transaction can significantly reduce fraud. (Source: Jesus Mena, Investigative Data Mining for Security and Criminal Detection, Butterworth-Heinemann, pp. 250-251) A data-mining analyst at a major credit card company would like to...
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