A bank wonders whether omitting the annual credit card fee for customers who charge at least...
A bank wonders whether omitting the annual credit card fee for customers who charge at least $18,000 in a year would increase the amount charged on its credit card. The bank makes this offer to a random sample of 50 of its existing customers. It then compares how much these customers charge this year with the amount that they charged last year. The sample mean increase is $500 and the sample standard deviation is $800. To determine whether there is significant evidence that the mean amount charged increases under the no-free offer, the bank performs a statistical test with H0: the mean increase μ = 0 vs H1: μ > 0. The rejection region is x̅ > 200. What are the significant level α and the p-value of this test?
Homework Answers
The t score for 
is
Degree of freedom: df=n-1 = 49
Now we need to find the area left to t = 1.77. Using excel function "=TDIST(1.77,49,1)" the required area, that is significant level α, is 0.0415.
------------------
Now the test statistics is
The p-value using excel function "=TDIST(4.419,49,1)" is 0.0000
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A bank wonders whether omitting the annual credit card fee for
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A bank wonders whether omitting the annual credit card fee for customers who charge at least...
A bank wonders whether omitting the annual credit card fee for customers who charge at least $3000 in a year would increase the amount charged on its credit card. The bank makes this offer to a random sample of 500 of its existing credit card customers. It then compares how much these customers charge this year with the amount that they charged last year. The mean increase is $565, and the standard deviation is $267. a. Is there significant evidence...
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