A large bank issues two types of credit cards (Mastercard and Visa card). A random sample of 50 Mastercard clients found that their average spending was R1200. For a random sample of 80 Visa card clients, their average spending was R1400. Assume that the population of average spending for both Mastercard and Visa card clients is normally distributed, with population standard deviations of R304 for Mastercard clients and R360 for Visa card clients respectively. Establish at 10% level of significance whether the average spending of the Mastercard clients is greater than the average spending of the Visa card clients. Let the Master card to be group one and the Visa card to be group 2 Critical value at 10% level of significance:1.645 Critical value at 5% level of significance:1.96 Critical value at 1% level of significance:2.576 1. State the decision rule 2. Calculate the test stat and the conclusion
A large bank issues two types of credit cards (Mastercard and Visa card). A random sample of 50 Mastercard clients found that their average spending was R1200. For a random sample of 80 Visa card clients, their average spending was R1400. Assume that the population of average spending for both Mastercard and Visa card clients is
Let the Master card to be group one and the Visa card to be group 2
Critical value at 10% level of significance:1.645
Critical value at 5% level of significance:1.96
Critical value at 1% level of significance:2.576
1. State the decision rule
2. Calculate the test stat and the conclusion
3. State the alternative hypothesis and the null hypothesis
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