A bank claims that the average cash withdrawal prior to the holidays by customers was $4,100. However, when auditors randomly examined the statements of 50 random bank customers their average withdrawal for that period turned out to be $4,360. Use a value of 5% for the probability of a Type 1 error. If the standard deviation for withdrawals is $1,200, determine the following:
a. Is there enough evidence from the sample of 50 customers to refute the bank’s claim? Explain the reason for your answer. b. What is the p-value based the information given above? Show how you determined the answer. c. Repeat part ‘a’ if the $4,360 average withdrawal was based on 100 random bank customers’ statements.

Answer rating: 100% (QA)

Null Hypothesis H 0 average cash withdrawal prior to the holidays by customers was 4100 Alternati... View the full answer