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A Manager of the Credit Department for an Oil Company

question 101

Multiple Choice

A manager of the credit department for an oil company would like to determine whether the mean monthly balance of credit card holders is equal to $75. An auditor selects a random sample of 100 accounts and finds that the mean owed is $83.40 with a sample standard deviation of $23.65. If you wanted to test whether the auditor should conclude that there is evidence that the mean balance is different from $75, which test would you use?


Definitions:

Subduction

Subduction is a geological process in which one tectonic plate moves under another plate and into the mantle as the plates converge, typically occurring at oceanic trenches.

Juan de Fuca Ridge

A tectonic plate boundary located off the coast of the Pacific Northwest region of North America, characterized by seafloor spreading and volcanic activity.

Hot Spot

A region with significantly higher temperature than its surroundings, often related to volcanic activity or environmental anomalies.

Seismic Activity

The frequency, type, and size of earthquakes experienced over a period of time in a particular area, often measured to assess and monitor earth movements.

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