A manager of the credit department for an oil company would like to determine wh

Question

A manager of the credit department for an oil company would like to determine whether the average monthly balance of credit card holders is equal to $75. An auditor selects a random sample of 100 accounts and finds that the average owed is $83.40 with a sample standard deviation of $23.65. If you wanted to test whether the auditor should conclude that there is evidence that the average balance is different from $75, which test would you use? a. Z-test of a population mean b. Z-test of a population proportion c. t-test of population mean d. chi^2 -test of population variance

Explanation / Answer

Which test would you use?

Answer :

t-test of population mean.

Note : population standard deviation ( sigma) is unknown.

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