question archive A manager of the credit department for an oil company would like to determine whether the mean monthly balance of credit card holders is equal to $75
A manager of the credit department for an oil company would like to determine whether the mean monthly balance of credit card holders is equal to $75
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A manager of the credit department for an oil company would like to determine whether the mean monthly balance of credit card holders is equal to $75. An auditor selects a random sample of 100 accounts and finds that the mean owed is $83.40 with a sample standard deviation of $23.65. If you wanted to test whether the mean balance is different from $75 and decided to reject the null hypothesis, what conclusion could you reach? 25) A) There is no evidence that the mean balance is not $75. B) There is no evidence that the mean balance is $75. C) There is evidence that the mean balance is $75. D) There is evidence that the mean balance is not $75.
Select one:
C
B
A
D
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D . There is evidence that the mean balance is not $75
Below is an illustration :
Step-by-step explanation
Here, the null hypothesis
?H0?:? the mean monthly balance of credit card holders is equal to $75
and
the Alternative hypothesis,
?H1?? : the mean monthly balance of credit card holders is not equal to $75.
From the findings, the mean owed is $83.40 . This is not equal to $75.
Therefore, we reject the null hypothesis.
Hence, we conclude that there is evidence that the mean balance is not $75
