10. The Bank of New England is concerned about the amount of debt being accrued by customers using its credit cards. The Board of directors decided to install an expensive monitoring system if the...


10. The Bank of New England is concerned about the amount of debt being accrued by

customers using its credit cards. The Board of directors decided to install an expensive

monitoring system if the mean for all the bank’s customers is greater than $2000. The

bank randomly selected 100 credit card holders and determined the amounts they

charged. For this sample group the mean is $2190 and standard deviation is $760. Use

0.02 level of significance to test the claim that the mean amount charged is greater than

$2000. Based on the results of testing, will the monitoring system be implemented?



Jun 08, 2022
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