Hypotheses to determine mean

Reference no: EM1316438

A sample of 81 account balances of a credit company showed an average balance of $1,200 with a standard deviation of $126.

a. Formulate the hypotheses that can be used to determine whether the mean of all account balances is significantly different from $1,150

b. Compute the test statistics.

c. Using the p-value approach, what is your conclusion?

Let α = .05

Reference no: EM1316438

Questions Cloud

Calculating the first derivative and critical point : Calculating the first derivative and critical point.

Presume that a highly liquid market does not exist for long : Presume that a highly liquid market does not exist for long-term T-bonds and and the expected rate of inflation is a constant

Find the amount of harry''s annual payment : Compute the amount yearly loan repayment - Find the amount of Harry's annual payment.

Calculate the variance of a binomial distribution : It is known that 60 percent of all registered voters in the 42nd congressional District are Republicans. There registered voters are selected at random from the district. Compute the probability that exactly 2 of the 3 selected are Republicans, u..

Hypotheses to determine mean : Formulate the hypotheses that can be used to determine whether the mean of all account balances is significantly different from $1,150

Knowing the mean score for a certain quiz in a statistics : Make a List of type of possible errors. Assume that you were interested in knowing the mean score for a certain quiz in a statistics class.

P-value associated with sample results : What is the p-value associated with the sample results? What is your conclusion based on the p- value?

Questions based on dividend discount model : Multiple choice questions using dividend discount model - what growth rate in dividends must be expected and what is Gold's stock worth to you

Risk analysis involving computation of cash flow : Risk analysis involving computation of cash flow and coefficient of variation and Wrigley Village Yearly After-tax Cash Inflow Crosley Square Yearly After-tax Cash Inflow

User Account

All Pages