document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1178198>Question 1178198</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A survey of households for a recent year showed a sample mean credit card debt was $8,758 with a standard deviation of $1,362. Five years earlier, another survey showed an average credit card debt was $8,218 with a standard deviation of $1,422. Both surveys used a sample size of 35 households.   Is there evidence to conclude that the average credit card debt has increased? Use á = 0.05.\r<BR>\n" );
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document.write( "a. State the hypotheses.\r<BR>\n" );
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document.write( "b. Find the critical value.\r<BR>\n" );
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document.write( "c. Compute the test statistic.\r<BR>\n" );
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document.write( "d. Make the decision.\r<BR>\n" );
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document.write( "e. Summarize the results.<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #807425 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=807425\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Ho: Current mean <= prior mean<BR>\n" );
document.write( "Ho: Current mean > prior mean<BR>\n" );
document.write( "alpha=0.05 p(reject Ho|Ho true}<BR>\n" );
document.write( "Test statistic is t df=68,0.95 1-way with critical value t>1.668<BR>\n" );
document.write( "calculation t=(x bar-mean)/sqrt ((s1^2/n1)+(s2^2/n2))<BR>\n" );
document.write( "=540/sqrt (110775.09)<BR>\n" );
document.write( "=1.622<BR>\n" );
document.write( "fail to reject Ho and insufficient evidence to support claim that the average credit card debt has increased<BR>\n" );
document.write( "p-value=0.055 </SPAN>\n" );
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