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.
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.
A First Course in Probability (10th Edition)
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ISBN:9780134753119
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Chapter1: Combinatorial Analysis
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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Contingency Table
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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.
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![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 GH¢400,
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb7b73186-85f6-4d8b-bed0-f9b2a5e4bfc7%2F20fcbc93-599d-4def-85b6-d9713ea06eef%2Fft0a97b_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 GH¢400,
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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