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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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, thereby holding ownership interest in the company.

Income

Money received, especially on a regular basis, for work, through investments, or from business activities.

Total Tax

The cumulative amount of taxes an individual or entity is required to pay, including federal, state, local, and other applicable taxes.