Question

16. customers monitoring syste bank Th e Bank of New England is concerned about the amount of debt being accrued by using its credit cards. The Board of directors decided to install an expensive m if the mean for all of the bank's customers is greater than $2000. The randomly selected 100 credit card holders and determined the amounts they charged. . For this sample group the mean is $2177 and standard deviation is $843. Use Oz5 level of significance to test the claim that the mean amount charged is greater Than $2000. Based on the results of testing, will the monitoring system be implemented? (7 points).

Answer 1

μέ 2000 2000 X= 2177 n- 100 S 843 n-1 99 00.025 le1.984 Decision rule Reject HO if t> 1.984 Null hypothesis;Ho Alternative hypothesis,H1 sample mean Sample size: Sample s.d: Degrees of freedom Level of significancee μ> Critical value: Test statistic: 71 p-value: Fort2.1 with df- 99 The right tailed p-value is 0.0191 Decision: Since p-value < α, reject H0 Conclusion There is sufficient evidence to support the claim, so mon itoring system will be implemented