A study found that consumers are making average monthly debt payments of $983 (Experian.com, November 11, 2010). The data accompanying this exercise show the average debt payments (Debt, in $) for 26 metropolitan areas.

CityDebtWashington, D.C.$1,285Seattle1,135Baltimore1,133Boston1,133Denver1,104San Francisco1,098San Diego1,076Sacramento1,045Los Angeles1,024Chicago1,017Philadelphia1,011Minneapolis1,011New York989Atlanta986Dallas970Phoenix957Portland948Cincinnati920Houston889Columbus888St. Louis886Miami867Detroit832Cleveland812Tampa791Pittsburgh763Source: www.Experian.com, November 11, 2010.

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a.Select the null and the alternative hypotheses in order to test whether average monthly debt payments are greater than $900.

multiple choice 1

• H₀:= 900;H_A: 900
• H₀: 900;H_A:> 900
• H₀: 900;H_A:< 900

b.What assumption regarding the population is necessary to implement this step?

multiple choice 2

• Unimodal and fairly symmetric
• Unimodal and skewed
• Not necessarily unimodal and symmetric
• Not necessarily unimodal and skewed

c-1.Calculate the value of the test statistic.(Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)

c-2.Find thep-value.(Roundfinal answer to 4decimal places.)

d.At= 0.05 what is your conclusion?

multiple choice 3

• RejectH₀; the average monthly debt payments are greater than $900.
• RejectH₀; the average monthly debt payments are not greater than $900.
• Do not rejectH₀; the average monthly debt payments are greater than $900.
• Do not rejectH₀; the average monthly debt payments are not greater than $900.