Answered: A credit card company claims that the…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

A credit card company claims that the mean credit card debt for individuals is greater than $4,800. You want to test this claim. You find that a random sample of 28 cardholders has a mean credit card balance of $4,980 and a standard deviation of $650. At a = 0.10, can you support the claim? Complete parts (a) through (e) below. Assume the population is normally distributed.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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