Credit card companies sometimes hire a collection agency to collect money from d

Question

Credit card companies sometimes hire a collection agency to collect money from delinquent cardholders. To justify the cost of using the collection agency, the agency must collect an average of at least $250 per customer. After a trial period during which the agency attempted to collect from a random sample of 100 delinquent cardholders, the 90% confidence interval on the mean collected amount was reported as $266.50, $299.50). Given this, what recommendation would you make to the credit card company about using the collection agency? What are the appropriate hypotheses for this situation? H: The mean collected amount HA: The mean collected amount Based on the confidence interval, we should $250. V $250. the null hypothesis. There | evidence to conclude that the mean collected amount V $250 at thelevel of significance. The sample mean is Fr, i-lpd irs.twairan, alhe: iirtys iiy money on the trial. The company should / in arm". 1c.idd The confidence interval indicates that the mean

Explanation / Answer

Ho the mean collected amount is equal to 250

Ha: the mean collected amount is greater than 250

based on the confidence interval,,,we should reject the null hypothesis, There is sufficient evidence,,,

amount is greater than 250 at the 0.10 level of signifcance,

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