A Sample of 64 Account Balances from a Credit Company

question 111

Essay

A sample of 64 account balances from a credit company showed an average daily balance of $1,040. The standard deviation of the population is known to be $200. We are interested in determining if the mean of all account balances (i.e., population mean) is significantly different from $1,000.
a.Develop the appropriate hypotheses for this problem.
b.Compute the test statistic.
c.Compute the p-value.
d.Using the p-value approach at 95% confidence, test the above hypotheses.
e.Using the critical value approach at 95% confidence, test the hypotheses.

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Definitions:

Impulse Purchases

Items bought without prior planning or consideration, often triggered by emotions or the immediate appeal of the product.

Self-Actualization

When a person is completely satisfied with his or her life.

Habitual Decision Making

A type of consumer behavior characterized by little or no conscious effort, often because of brand loyalty or the routine nature of the product.

Internal Sources

Information or resources that come from within an organization, such as employee knowledge, company databases, or internal reports.