Question

The Mammon Savings and Loan Company claims that the average amount of money on deposit in a savings account in their bank is $7,500. Suppose a random sample of 49 accounts shows the average amount on deposit to be $6,850 with sample standard deviation $1,200. Construct a hypothesis test to determine whether the average amount on deposit per account is different from $7,500. Use a 1% level of significance.

Answer 1

We reject H0 to conclude that average money deposit in savings bank account in the bank is different from $7500.

Step-by-step explanation:

Please see attachment