A student took out a simple interest loan for 2400 for 2 years at a rate of 7%. What is the interest on the loan?
1 answer:
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Answer:
see below
Step-by-step explanation:
As with many multiple-choice questions, the appropriate choices can often be determined with a simple test. Here, you only need to look at the values of the constants. (Those are ringed in blue.)
The valid conclusions for the manager based on the considered test is given by: Option
<h3>When do we perform one sample z-test?</h3>One sample z-test is performed if the sample size is large enough (n > 30) and we want to know if the sample comes from the specific population.
For this case, we're specified that:
- Population mean =
= $150
- Population standard deviation =
= $30.20
- Sample mean =
= $160
- Sample size = n = 40 > 30
- Level of significance =
= 2.5% = 0.025
- We want to determine if the average customer spends more in his store than the national average.
Forming hypotheses:
- Null Hypothesis: Nullifies what we're trying to determine. Assumes that the average customer doesn't spend more in the store than the national average. Symbolically, we get:
- Alternate hypothesis: Assumes that customer spends more in his store than the national average. Symbolically
where is the hypothesized population mean of the money his customer spends in his store.
The z-test statistic we get is:
The test is single tailed, (right tailed).
The critical value of z at level of significance 0.025 is 1.96
Since we've got 2.904 > 1.96, so we reject the null hypothesis.
(as for right tailed test, we reject null hypothesis if the test statistic is > critical value).
Thus, we accept the alternate hypothesis that customer spends more in his store than the national average.
Learn more about one-sample z-test here: