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The average credit debt for recent year was $9205...

The average credit card debt for a recent year was $9205. Five years earlier the average credit card debt was $6618. Assume sample sizes of 35 were used and thestandard deviation of both samples were $1928. Is there enough evidence to believe that the average credit card debt has increased? Use alpha = 0.05. Give a possiblereason as to why or why not the debt has increased.
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Answer #1

Hypothesis:
H0 : mu = 6618
Ha : mu > 6618

Test statistics:

z = ( x -mean) /(s/sqrt(n))
= ( 9205 - 6618)/(1928/sqrt(35))
= 7.94

P value = 0.00001.

we reject the null hypothesis

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Answer #2

P value = 0.00001.


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