document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1096633>Question 1096633</A>: <I><SPAN STYLE=\"word-break: break-all;\"> It has been reported that the average credit card debt for college seniors at the college book<BR>\n" );
document.write( "store for a specific college is $3262 and the standard deviation is $1100. The student senate at<BR>\n" );
document.write( "a large university feels that their seniors have debt much less than this, so it conducts a study of<BR>\n" );
document.write( "50 randomly selected seniors and finds that average debt is $2995. Is the student senate correct<BR>\n" );
document.write( "with &#61537; &#61501; 0.05. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #711159 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=711159\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Assuming a z test here with known sd.<BR>\n" );
document.write( "the 95% CI, if this is used will be mean +/- 1.96*1100*sigma/sqrt(n)<BR>\n" );
document.write( "this is +/- $304/90 or $305<BR>\n" );
document.write( "The 95% CI is ($2690, $3300).  Because $3262 is in the confidence interval, one cannot conclude that this is statistically significant at the 0.05 level<BR>\n" );
document.write( "The z-test would be (2995-3262)/1100/sqrt(50)=-1.72<BR>\n" );
document.write( "With Ho being that there is no difference<BR>\n" );
document.write( "Ha being there is a difference<BR>\n" );
document.write( "alpha being 0.05 <BR>\n" );
document.write( "test statistic of z=(bar-mean)/sigma/sqrt(n)<BR>\n" );
document.write( "critical value is |z|>1.96<BR>\n" );
document.write( "p-value is 0.086, which is greater than 0.05 so Ho is not rejected. </SPAN>\n" );
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