Asked by Andrew McDonald on May 26, 2024
Verified
A sample of 81 account balances of a credit company showed an average balance of $1200 with a standard deviation of $126.
a.
Formulate the hypotheses that can be used to determine whether the mean of all account balances is significantly different from $1150.
b.
Compute the test statistic.
c.
Using the p-value approach, what is your conclusion? Let α = .05.
Test Statistic
A statistic calculated from sample data and used in hypothesis testing to determine the plausibility of the null hypothesis.
Null Hypothesis
A hypothesis that there is no significant difference or relationship between specified populations, which serves as a default position until evidence indicates otherwise.
P-Value
Given that the null hypothesis is presumed correct, it's the likelihood of experiencing test findings that are as extreme or more extreme than actually observed ones.
- Grasp the concept of generating null and alternative hypotheses in different statistical studies.
- Carry out the calculation of test statistics for various data modalities and research strategies.
- Grasp the essentials of p-value and the methodology behind its computation.
Verified Answer
TS
Twinkle SanghviMay 31, 2024
Final Answer :
a.
H0: μ = $1150
Ha: μ ≠ $1150
b.
t = 3.571
c.
p-value (almost zero) <.005; therefore, reject H0 and conclude that the mean balance is significantly different from $1150.
a.
H0: μ = $1150
Ha: μ ≠ $1150
b.
t = 3.571
c.
p-value (almost zero) <.005; therefore, reject H0 and conclude that the mean balance is significantly different from $1150.
Learning Objectives
- Grasp the concept of generating null and alternative hypotheses in different statistical studies.
- Carry out the calculation of test statistics for various data modalities and research strategies.
- Grasp the essentials of p-value and the methodology behind its computation.