The Average Credit Card Debt for a Recent Year Was $\$ 8824$

question 93

Essay

The average credit card debt for a recent year was $\$ 8824$ . Five years earlier the average credit card debt was $\$ 8159$ . Assume sample sizes of 35 were used and the population standard deviations of both samples were $\$ 1396$ . Is there evidence to conclude that the average credit card debt has increased? Use $\alpha = 0.05$ .
a. State the hypotheses.
b. Find the critical value.
c. Compute the test statistic.
d. Make the decision.
e. Summarize the results.

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