Acredit reporting agency claims that the mean credit card debt in a town is greater than $3500. a random sample of the credit card debt of 20 residents in that town has a mean credit card debt of $3600 and a standard deviation of $391. at α=0.10, can the credit agency’s claim be supported, assuming this is a normally distributed data set?

Claim is false

Step-by-step explanation:

Claim : A credit reporting agency claims that the mean credit card debt in a town is greater than $3500.

n = 20

Since n <30

So we will use t test

Formula :

s = standard deviation = 391

x = 3600

n = 20

Degree of freedom = n-1 = 20-1 = 19

α=0.10

So, using t table

= 1.72

t critical > t calculated

So we accept the null hypothesis

Hence we reject the claim that the mean credit card debt in a town is greater than $3500.

2

step-by-step explanation: