The head of Marketing at American Expresso is interested in determining whether

Question

The head of Marketing at American Expresso is interested in determining whether the average income of its credit card holders has increased over the past 13 years. When the credit cards were first marketed, the mean income of all card holders was equal to $55,000 per annum. The results of the corresponding hypothesis test that was carried out are shown here AMERICAN EXPRESSO INCOME TEST Ho: = $55,000 per annum Ha: > $55,000 per annum According to the hypothesis test results, it is most reasonable to conclude that: 0 there is a 99.27% chance that the mean income of American a = 0.05 x = $57,701 per annum = $7,000 per annum n=40 z = 2.44 Expresso credit card holders is now greater than $55,000 per annunm have an income greater than $55,000 per annum income of American Expresso credit card holders is now greater o approximately 99.27% of American Expresso credit card holders P-value = 0.0073 there is evidence supporting the hypothesis that the mean Outcome: REJECT THE NULL than $55,000 per annum o the mean income of American Expresso credit card holders is now greater than $55,000 per annum

Explanation / Answer

Since our decision is to reject the null hypotheis, there is sufficient evidence supporting the hypothesis that income of credit card holders is now greater than $55,000 per annum.

Option C is correct.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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