The manager of a department store is thinking about establishing a new billing system for the store’s credit customer. She determines that the new system will be cost effective only if the mean monthly account is greater than $70. A random sample of 200 monthly accounts is drawn for which the sample mean account is $74.0 The manager knows that the accounts are normally distributed with a standard deviation of $30. Is there enough evidence at the 5% level of significance to conclude that the new system will be cost effective?

The manager of a department store is thinking about establishing a new billing system for the store’s credit customer. She determines that the new system will be cost effective only if the mean monthly account is greater than $70. A random sample of 200 monthly accounts is drawn for which the sample mean account is $74.0 The manager knows that the accounts are normally distributed with a standard deviation of $30. Is there enough evidence at the 5% level of significance to conclude that the new system will be cost effective?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.3: Measures Of Spread

Problem 1GP

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Question

The manager of a department store is thinking about establishing a new billing system for the
store’s credit customer. She determines that the new system will be cost effective only if the mean
monthly account is greater than $70. A random sample of 200 monthly accounts is drawn for which
the sample mean account is $74.0 The manager knows that the accounts are normally distributed
with a standard deviation of $30. Is there enough evidence at the 5% level of significance to
conclude that the new system will be cost effective?

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