document.write( "Question 1177875: A credit card watchdog group claims that there is a difference in the mean credit card debts of households in California and Illinois. The results of a random survey of 900 households from each state are shown below. The two samples are independent. Assume that σ1=$3545 for California and σ2=$2119 for Illinois. Do the results support the group's claim? Use α=0.01. \r
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document.write( "California = 13254
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document.write( " n= 900\r
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document.write( "Illinois = 16866
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document.write( "n=900\r
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Algebra.Com's Answer #807046 by Boreal(15235)![]() ![]() You can put this solution on YOUR website! This is strictly speaking a two sample t-test, but the samples are so large a z-test will be sufficient \n" ); document.write( "z=(difference in means)/ sqrt (sigma1^2/n1+ sigma2^2/n2) \n" ); document.write( "=-3632/137.67 \n" ); document.write( "=-26 \n" ); document.write( "very highly significant, p-value=0 \n" ); document.write( "There is a difference between the two states, meaning that both values could not come from the same population. \n" ); document.write( " \n" ); document.write( " |