Question

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 1

test statistics = 11.57

Explanation:

test statics =
`(average spend from the sample - average spend from theory)/(Standard deviation / √(no of samples) )`

=
`(115-100)/(41/√(1000) )` = 11.57