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Bank fees have come under scrutiny lately. Prior to the recession, fees charged by banks for...

Bank fees have come under scrutiny lately. Prior to the recession, fees charged by banks for late credit card payments averaged $ 40. A government agency would like to test the hypothesis that these fees now average more than $ 40. After 55 banks were randomly sampled, it was found that the average late fee is $ 45. Assume the population standard deviation for these late fees is $ 15.00. Follow the steps in the previous section to test the government’s claim using alpha = 0.05.
1.Calculate the z test statistic (round to 2 decimal places)

2.Calculate the p-value (round to 3 decimal places)

3.Do you reject or not reject the null hypothesis?

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Answer #1

1. z-statistic = (sample mean - population mean)/(population standard deviation/sqrt(sample size))

z-statistic = (45-40)/(15/sqrt(55)) = 2.47

2. p-value= 0.007

3. Do not reject the null hypothesis because p-value is less than significance level (alpha).

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