Question

A sample of 144 account balances from a credit company showed an average daily balance of $1855. The account balance are known to be normally distributed. Further, the standard deviation of the population is known to be $300. We are interested in determining if the mean of all account balances (i.e., population mean) is significantly different from $1800. Compute the test statistic.

Name: a sample of 144 account balances from a credit company showed an average daily balance of 1855 the account balance are known to be normally distributed further the standard deviation of the 34553
Uploaded: 2022-04-12T08:23:32-08:00
Duration: 2 min 45 s
Channel: Aarti Kumari
Description: a sample of 144 account balances from a credit company showed an average daily balance of 1855 the account balance are known to be normally distributed further the standard deviation of the 34553

          A sample of 144 account balances from a credit company showed an average daily balance of $1855.
The account balance are known to be normally distributed. Further, the standard deviation of the population is known to be $300. We are interested in determining if the mean of all account balances (i.e., population mean) is significantly different from $1800.
Compute the test statistic.

Added by Sarah J.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

Instant Answer

Solved by Expert Aarti Kumari

04/12/2022

Step 1

Step 1: Compute the standard error of the mean using the population standard deviation: SE = sigma / sqrt(n) = 300 / sqrt(144) = 300 / 12 = 25. Show more…

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A sample of 144 account balances from a credit company showed an average daily balance of $1855. The account balance are known to be normally distributed. Further, the standard deviation of the population is known to be $300. We are interested in determining if the mean of all account balances (i.e., population mean) is significantly different from $1800. Compute the test statistic.