A credit bureau analysis of undergraduate students\' credit records found that t

Question

A credit bureau analysis of undergraduate students' credit records found that the average number of credit cards in an undergraduate's wallet was 4.03. It was also reported that in a random sample of 139 undergraduates, the sample mean number of credit cards that the students said they earned was 2.9. The sample standard deviation was not reported, but for purposes of this exercise, suppose that it was 1.2. Is there convincing evidence that the mean number of credit cards that undergraduates report carrying is less than the credit bureau's figure of 4.03? (Use alpha = 0.05. Use a statistical computer package to calculate the P - value. Round your test statistic to two decimal places and your P-value to three decimal places.) t = P-value State your conclusion. Reject H_0. We have convincing evidence that the mean number of credit cards carried by undergraduates is less than the credit bureau's figure of 4.03. Do not reject H_0. We have convincing evidence that the mean number of credit cards earned by undergraduates is less than the credit bureau's figure of 4.03. Do not reject H_0. We do not have convincing evidence that the mean number of credit cards carried by undergraduates is less than the credit bureau's figure of 4.03. Reject H_0. We do not have convincing evidence that the mean number of credit cards earned by undergraduates is less than the credit bureau's figure of 4.03.

Explanation / Answer

here std error =std deviation/(n)1/2 =1.2/(139)1/2=0.102

therefore tstat =(X-mean)/std error =(2.9-4.03)/0.102 =-11.08

and p value for above t at (n-1=138) degree of freedom =0.000

as p value is less then 0.05 level, we reject null hypothesis.

therefore option A

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