Question: One Sample Hypothesis Test : A credit card company wondered whether giving frequent flyer miles for every purchase would increase card usage, which has a
One Sample Hypothesis Test: A credit card company wondered whether giving frequent flyer miles for every purchase would increase card usage, which has a current mean of $2500 per year. They gave free miles to 51 credit card customers and found their mean credit card purchases to be $2542 per year. Assume the population standard deviation is $112. Given this data perform a hypothesis test, at = 0.01, to see if the customers increased their card usage.
- Identify the null hypothesis, Ho, and the alternative hypothesis, Ha.
- Determine whether the hypothesis test is left-tailed, right-tailed, or two-tailed.
- Find the critical value(s) and identify the rejection region(s).
- Find the appropriate standardized test statistic. If convenient, use technology.
- Decide whether to reject or fail to reject the null hypothesis.
- Interpret the decision in the context of the original claim.
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