A survey was conducted two years ago asking college students their top motivations for using a credit card. To determine whether this distribution has changed, you randomly select 425 college students and ask each one what the top motivation is for using a credit card. Can you conclude that there has been a change in the claimed or expected distribution? Use a= 0.05. Complete parts (a) through (d). New Survey Frequency, f 112 Response Old Survey % Rewards Low rates Cash back Discounts Other 27% 97 23% 21% 108 9% 48 20% 60 a. State Ho and H, and identify the claim. What is the null hypothesis, Ho? O A. The distribution of motivations is 27% rewards, 23% low rate, 21% cash back, 9% discounts, and 20% other. O B. The distribution of motivations is 112 rewards, 97 low rate, 108 cash back, 48discounts, and 60 other. O C. The distribution of motivations differs from the expected distribution. What is the alternate hypothesis, H3? O A. The distribution of motivations differs from the claimed or expected distribution. The distribution of mntivations is 27% rewards 23% low rate 21% cash hark 9% disCounts and 20% other
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
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