Question

It has been reported that the average credit card debt for college seniors is $3262. The student senate at a large university feels that their seniors have a debt much less than this, so it conducts a study of 50 randomly selected seniors and finds that the average debt is $2995, and the population standard deviation is $1100. At α = 0.05, is the student senate correct? a) State the hypotheses and identify the claim with the correct hypothesis

Answer 1

Following are the solution to the given point:

Explanation:

The formulated null hypothesis would be that the reported average do not differ significantly

`H_o : \mu = \$3262\\\\H_a : \mu < \$3262 \ \text{(One tailed test)}`