.A credit card company wants to test the hypothesis that its account holders spend an average of $100 per month
1.A credit card company wants to test the hypothesis that its account holders spend an average of $100 per month
at gasoline stations. They take a sample of 1000 accounts and find an average spend of $115 with a standard deviation of $41. Conduct this hypothesis test with a .01 level of significance. What is the test statistic? Answer to two decimal places. Hint: this is a two-tail test.
2.
Based on the test statistic you found above for the 1000 customers with their spending on gasoline and the alpha value of .01 what conclusion do you draw?
| Reject the null hypothesis; there is strong evidence that the average spend is not $100. | ||
| Fail to reject the null hypothesis; there is not strong evidence that the average spend is not $100 . | ||
| Reject the null hypothesis; there is strong evidence that the average spend is $100 . | ||
| Fail to reject the null hypothesis; there is strong evidence that the average spend is not $100 . |
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