Question

A credit card company wants to test the hypothesis that its account holders spend an average of $100 per month at gasoline stations. They take a sample of 1000 accounts and find an average spend of $115 with a standard deviation of $41. Conduct this hypothesis test with a .01 level of significance. What is the test statistic?

Answer 1

Answer:

test statistics = 11.57

Step-by-step explanation:

test statics = $\frac{average spend from the sample - average spend from theory}{Standard deviation / \sqrt{no of samples} }$

= $\frac{115-100}{41/\sqrt{1000} }$  = 11.57