Answer:
On this case the claim that they want to test is: "A credit card company estimates that the average credit card balance of Americans is $3,210. A statistics student wants to know whether this is true for citizens of her home town". So we want to check if the population mean is equal to 3210 and that represent the null hypothesis and on the alternative hypothesis we need to have the complement of the alternative hypothesis.
Null hypothesis:
Alternative hypothesis:
And the best alternative for this case would be:
One sample t-test
And the reason why is because we are interest in the true mean, and we assume that the population deviation is not known.
Step-by-step explanation:
A hypothesis is defined as "a speculation or theory based on insufficient evidence that lends itself to further testing and experimentation. With further testing, a hypothesis can usually be proven true or false".
The null hypothesis is defined as "a hypothesis that says there is no statistical significance between the two variables in the hypothesis. It is the hypothesis that the researcher is trying to disprove".
The alternative hypothesis is "just the inverse, or opposite, of the null hypothesis. It is the hypothesis that researcher is trying to prove".
On this case the claim that they want to test is: "A credit card company estimates that the average credit card balance of Americans is $3,210. A statistics student wants to know whether this is true for citizens of her home town". So we want to check if the population mean is equal to 3210 and that represent the null hypothesis and on the alternative hypothesis we need to have the complement of the alternative hypothesis.
Null hypothesis:
Alternative hypothesis:
And the best alternative for this case would be:
One sample t-test
And the reason why is because we are interest in the true mean, and we assume that the population deviation is not known.