A sample of 80 account balances from a credit company showed an average daily balance of $1,050 and the sample standard deviation is $300. The standard deviation of the population is unknown. We are interested in determining if the mean of all account balances (i.e., population mean) is significantly different from $1,100.

Develop the appropriate hypotheses for this problem.

Determine the test statistic, and then compute the test statistic.

Compute the p-value.

Using the p-value approach at 90% confidence, test the above hypotheses.

Using the critical value approach at 90% confidence, test the hypotheses.