Ecobank Ethiopia issues its own credit card. The credit manager, Gloria wants to find whether the mean monthly unpaid balance is not at most Ghc400. The level of significance is set at 0.05. A random check of 25 unpaid balances revealed that the average is GHC410 with the standard deviation of GHC20. Should the credit manager conclude that the population mean is not at most GHC400, or is it reasonable that the difference is due to chance? a. Explain why t is the test statistic to be used here. b. What is the critical value of the test statistic? c. What is your decision regarding the H0? d. Estimate the p-value and use it to decide. e. Should the credit manager conclude that the population mean is not at most GHc400, or is it reasonable that the difference is due to chance? Explain briefly.

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Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.