A report about how American college students manage their finances includes data

Question

A report about how American college students manage their finances includes data from a survey of college students. Each person in a representative sample of 793 college students was asked if they had one or more credit cards and if so, whether they paid their balance in full each month. There were 500 who paid in full each month. For this sample of 500 students, the sample mean credit card balance was reported to be $825. The sample standard deviation of the credit card balances for these 500 students was not reported, but for purposes of this exercises, suppose that it was $205. Is there convincing evidence that college students who pay their credit card balance in full each month have a mean balonce that is lower than $905, the velue reported for all college students with credit cards? Corry out a hypothesis test using& significance level of 0.01 State the appropriate null and alternative hypotheses ? Ho: ? 905 Ho: ga-905 Hai ? > 905 H0: ? = 905 Hai ? # 905 ??, ? > 905 Ha: ?

Explanation / Answer

Ans:

Test statistic:

t=(825-905)/(205/sqrt(500))

t=-8.7

p-value=0

As,p-value<0.01,we reject H0.We have conveincing evidence that college students who pay their credit card balance in full each month have a mean balance that is lower than 905.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.