Is there sufficient evidence at the 0.05 level of significancethat the average monthly charge has increased?
Determine the null hypothesis, H0, and the alternativehypothesis, H1?
Compute the test statistic?
Using a level of significance of 0.05, what is the criticalvalue?
Find the p-value for the test?
What is your conclusion?
Is There Sufficient Evidence At The 0 05 Level Of Significance That The Average Monthly Charge Has Increased Determine 1 (49.95 KiB) Viewed 35 times
A bank found that in recent years, the average monthly charge on its credit card was $1,450. With an improving economy, they suspect that this amount has increased. A sample of 45 customers resulted in an average monthly charge of $1,476.07 with a standard deviation of $182.93. Do these data provide statistical evidence that the average monthly charge has increased? Formulate the appropriate hypothesis test and draw a conclusion. Use a level of significance of 0.05.
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