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 11 years. When the credit cards were first marketed, the mean income of all card holders was equal to $60,000 per annum. The results of the corresponding hypothesis test that was carried out are shown here. According to the hypothesis test results, it is most reasonable to conclude that: the mean income of American Expresso credit card holders is now greater than $60,000 per annum there is evidence supporting the hypothesis that the mean income of American Expresso credit card holders is now greater than $60,000 per annum there is a 99.38% chance that the mean income of American Expresso credit card holders is now greater than $60,000 per annum approximately 99.38% of American Expresso credit card holders have an income greater than $60,000 per annum. H0: = $60,000 per annum Ha: > $60,000 per annum = 0.05 x = $62,372 per annum = $6,000 per annum n = 40 z = 2.50 P-value = 0.0062 Outcome: REJECT THE NULL

Explanation / Answer

Here, the P value is 0.0062, which is less than 0.05. Hence, we reject Ho. Hence, the best way to phrase the rejection of Ho is

OPTION B: there is evidence supporting the hypothesis that the mean income of American Expresso credit card holders is now greater than $60,000 per annum [ANSWER]

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