A sample of 64 account balances of a credit company showed an average balance of $1,125 with a standard deviation of $126.

State your "givens" from the prompt.

What kind of test will you use, and why?

Is this one-tail, or two tailed, and how do you know?

Formulate the hypotheses that can be used to determine whether the mean of all account balances is significantly different from $1,200.

Compute the test statistic. Show your formula and what numbers were plugged in.

Using the p-value approach, what is your conclusion? Let α = .05.

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solution Hypothesis Testing moldstep from the hypothesis the hy... View the full answer