1.Survey indicated American paid a mean of $6,658 interest on credit card debt i

Question

1.Survey indicated American paid a mean of $6,658 interest on credit card debt in 2017. A sample of 12 households with children showed the following amounts: 7077 5744 6753 7381 7625 6636 7164 7348 8060 5848 9275 7052 At the 0.5 significance level is it reasonable to conclude that these household paid more interest? Hint: Use Data, Data Analysis, two sample t test, use the attached data as one column in Excel, And use 6,658 as the only number in the second column. Perform the t test (watch for significance level) and answer the following: B) df c) t stat D) P(T

Explanation / Answer

Hypothesis:

H0 : mu = 6658
H1 : mu > 6658

a)
mean of two variables= 7163.5833
std.deviation = 942.3701

b)
df = n -1 = 11

c)
t = (mean - mu )/(s/sqrt(n))
= (7163.5833 - 6658)/(942.3701/sqrt(12))
= 1.8585
d) t critical two tail = +/- 2.201
Here, is one tail so, t critical = -1.796

e)
we can reject the null hypothesis.
yes, it is reasonable

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