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# Test of hypothesis

A sample of 64 account balances from a credit card company showed an average balance of \$1,040. A previously determined population standard deviation is \$200. Test to determine if the mean of all account balances is significantly different from \$1,000. Use a 0.05 level of significance. (may use traditional or p-value method)

#### Solution Preview

A sample of 64 account balances from a credit card company showed an average balance of \$1,040. A previously determined population standard deviation is \$200. Test to determine if the mean of all account balances is significantly different from \$1,000. Use a 0.05 level of significance. (may use traditional or p-value method)

Data for the problem
Hypothesized mean= \$1,000
Standard deviation= \$200
Sample mean= \$1,040
Sample size= 64
Significance level= 0.05 0r 5%
Population standard deviation (Known, Not Known)= Known

1) Hypothesis
Null ...

#### Solution Summary

Tests the hypothesis that the mean of all account balances for a credit card company is significantly different from \$1,000.

\$2.19