A sample of 81 account balances of a credit company showed an average balance of $1200 with a standard deviation of $126.
a.
Formulate the hypotheses that can be used to determine whether the mean of all account balances is significantly different from $1150.
b.
Compute the test statistic.
c.
Using the p-value approach, what is your conclusion? Let α = .05.

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The Answer of A sample of 81 account balances of a credit company showed an average balance of $1200 with a standard deviation of $126.
a.
Formulate the hypotheses that can be used to determine whether the mean of all account balances is significantly different from $1150.
b.
Compute the test statistic.
c.
Using the p-value approach, what is your conclusion? Let α = .05.

A Sample of 81 Account Balances of a Credit Company