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)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
Related questions
Concept explainers
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.
Topic Video
Question
100%
Ecobank-Attached
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.Recommended textbooks for you
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON