A credit card company claims that the mean credit card debt for individuals is greater than $5000. You want to test this claim. You find that a random sample of 37 cardholders has a mean credit card balance of $5122 and a standard deviation of $625. At α = 0.05, can you support the claim?
(a) Identify the claim and state H0 and Ha,
(b) Find the critical value(s) and identify the rejection region(s),
(c) Find the standardized test statistic t,
(d) Decide whether to reject or fail to reject the null hypothesis,
(e) Interpret the decision in the context of the original claim. Assume the population is normally distributed. If convenient, use technology. |

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