Title: MTH410 - Module 6 - Check Your Understanding
Type: Fill in the blank
Question: 1. A sample of 64 account balances from a credit company showed an average daily balance
of $1,040. The standard deviation of the population is known to be $200. We are interested in
determining if the mean of all account balances (i.e., population mean) is significantly different from
$1,000. Compute the test statistic.
Correct Answer: 1.60
Correct Feedback: That’s correct!
Incorrect Feedback: The correct answer is: 1.60
Question: 2. A sample of 64 account balances from a credit company showed an average daily balance
of $1,040. The standard deviation of the population is known to be $200. We are interested in
determining if the mean of all account balances (i.e., population mean) is significantly different from
$1,000. Compute the p-value.
Correct Answer: .1096
Correct Feedback: That’s correct!
Incorrect Feedback: The correct answer is: .1096
Question: 3. A sample of 64 account balances from a credit company showed an average daily balance
of $1,040. The standard deviation of the population is known to be $200. We are interested in
determining if the mean of all account balances (i.e., population mean) is significantly different from
$1,000. Using the p-value approach at 95% confidence, test the above hypotheses.
Correct Answer: The phypothesis is not rejected; and we conclude that there is not sufficient evidence to indicate that the
advertising campaigns have been effective.
Correct Feedback: That’s correct!
Incorrect Feedback: The correct answer is: The pconfidence). Hence, the null hypothesis is not rejected; and we conclude that there is not sufficient
evidence to indicate that the advertising campaigns have been effective.
Question: 4. A sample of 64 account balances from a credit company showed an average daily balance
of $1,040. The standard deviation of the population is known to be $200. We are interested in
determining if the mean of all account balances (i.e., population mean) is significantly different from
$1,000. Using the critical value approach at 95% confidence, test the hypotheses.
Correct Answer: In Part b, the Z statistic was computed and its value was 1.60. Since 1.60 is between 1.96 and 1.96, the null hypothesis cannot be rejected; and we conclude that there is no evidence that
the mean is significantly different from $1,000.
Correct Feedback: That’s correct!
Incorrect Feedback: The correct answer is: In Part b, the Z statistic was computed and its value was 1.60.
Since 1.60 is between -1.96 and 1.96, the null hypothesis cannot be rejected; and we conclude that
there is no evidence that the mean is significantly different from $1,000.