CJ's Discount Appliance problem
Not what you're looking for?
CJ's Discount Appliance Store issues its own credit cards. The credit manager wants to know if the mean monthly, unpaid balance is more than $400. The level of significance is .05. A random check of 200 unpaid balances revealed the sample mean of $420 and the standard deviation of the sample is $40. Should the credit manager conclude the population mean is greater than $400, or is it reasonable that the difference of $20 is due to chance?
1. What test is most appropriate for this problem?
A. Chi-square
B. ANOVA-single factor
C. T-test of paired samples
D. T-test assuming unequal variances
E. Z-test two-sample for means
2. What is the null hypothesis?
A. H0: μ = 400
B. H0: μ ≠ 400
C. H0: μ ≥ 400
D. H0: μ ≤ 400
E. H0: μ1 = μ2
3. What is the test value?
A. -7.07
B. 7.07
C. 1.65
D. -1.65
E. Something else
4. What is your decision?
A. Accept the null of no difference and conclude the balance is not statistically greater than $400.
B. Accept the null of no difference and conclude the balance is statistically less than $400.
C. Reject the null of no difference and conclude the balance is not statistically less than $400.
D. Reject the null of no difference and conclude the balance is statistically greater than $400.
E. Something else
Purchase this Solution
Solution Summary
Step by step solutions to all the problems is provided. The expert tests the most appropriate for the problem.
Education
- BSc, Meerut University
- MSc, Meerut University
- MPhil, Institute of Advanced Studies
- MSc, AIT
Recent Feedback
- "Perfect, thank you so much!!! I will definitely request you in the future! You are amazing!"
- "Thank you. "
- "Thank you so much I have two more that I need your help with if your available."
- "Thank you, I was wondering why you rejected me the first time."
- "Thanks again."
Purchase this Solution
Free BrainMass Quizzes
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.