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 average monthly balance of credit card holders is equal to $75. An auditor selects a random sample of 100 accounts and finds that the average owed is $83.40 with a sample standard deviation of $23.65. If you wanted to test whether the average balance is different from $75 and decided to reject the null hypothesis, what conclusion could you draw?

• A) There is not evidence that the average balance is $75.
• B) There is evidence that the average balance is $75.
• C) There is evidence that the average balance is not $75.
• D) There is not evidence that the average balance is not $75.

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Definitions:

Pustule

A small, inflamed, pus-filled blister on the skin, often indicating an infection.

Intradermal

Pertaining to within the layers of the skin.

Tine

A prong or sharp point, such as those on a fork or antler.

Lancet

A small, sharp surgical instrument used for making incisions, especially in the skin.