The manager of a department store is thinking about establishing a new billing system for the store's credit customers. She determines that the new system will be cost-effective only if the mean monthly account is more than $170. A random sample of 400 monthly accounts is drawn, for which the sample mean is $178. The manager knows that the accounts are approximately normally distributed with a standard deviation of $65. Can the manager conclude from this that the new system will be cost-effective at 10% significance level?
The manager of a department store is thinking about establishing a new billing system for the store's credit customers. She determines that the new system will be cost-effective only if the mean monthly account is more than $170. A random sample of 400 monthly accounts is drawn, for which the sample mean is $178. The manager knows that the accounts are approximately normally distributed with a standard deviation of $65. Can the manager conclude from this that the new system will be cost-effective at 10% significance level?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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The manager of a department store is thinking about establishing a new billing system for the store's credit customers.
She determines that the new system will be cost-effective only if the mean monthly account is more than $170. A random sample of 400 monthly accounts is drawn, for which the sample mean is $178.
The manager knows that the accounts are approximately normally distributed with a standard deviation of $65. Can the manager conclude from this that the new system will be cost-effective at 10% significance level?
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