A manager of the credit department for an oil company would like to determine whether the mean monthly balance of credit card holders is equal to $75.An auditor selects a random sample of 100 accounts and finds that the mean owed is $83.40 with a sample standard deviation of $23.65.If you wanted to test whether the mean balance is different from $75 and decided to reject the null hypothesis,what conclusion could you reach?
A)There is not evidence that the mean balance is $75.
B)There is not evidence that the mean balance is not $75.
C)There is evidence that the mean balance is $75.
D)There is evidence that the mean balance is not $75.

Question

Quizplus · Accepted Answer

Since the null hypothesis is rejected, it means that the sample mean of $83.40 is significantly different from the hypothesized value of $75. Therefore, there is evidence to suggest that the mean balance is not $75.

A Manager of the Credit Department for an Oil Company