In a study entitled How Undergraduate Students Use Credit Cards, Sallie Mae reported that undergraduate students have a mean credit card balance of $3,173. This figure was an all-time high and had increased 44% over the previous five years. Assume that a current study is being conducted to determine whether it can be concluded that the mean credit card balance for undergraduate students has continued to increase compared to the April 2009 report. Based on previous studies, use a population standard deviation σ = $1,000. For a sample of 180 undergraduate students with a sample mean credit card balance of $3,325, using a 0.05 level of significance, what is your conclusion?

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In a study entitled How Undergraduate Students Use Credit Cards, Sallie Mae reported that undergraduate students have a mean credit card balance of $3,173. This figure was an all-time high and had increased 44% over the previous five years. Assume that a current study is being conducted to determine whether it can be concluded that the mean credit card balance for undergraduate students has continued to increase compared to the April 2009 report. Based on previous studies, use a population standard deviation σ = $1,000.

For a sample of 180 undergraduate students with a sample mean credit card balance of $3,325, using a 0.05 level of significance, what is your conclusion?

 

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