Question

A credit card company wondered whether giving frequent flier miles for every purchase would increase card usage. The population mean had been $2500 per year. A simple random sample of 22 credit card customers found the sample mean to be $2542 with a standard deviation of $110. Test the claim that the credit card mean usage for the population is now different than $2500 per year. (use the traditional approach).

Claim
Null Hypothesis
Alternative Hypothesis
n
x-bar
s or sigma?	Value
Level of significance
z or t?	Value
df (if none, type NA)
Is it one tailed to the right?
Is it one tailed to the left?
Is it two tailed?
Critical value(s)
Test Ratio
Decision (Reject or Accept the Null Hypothesis)
Conclusion (Is there enough evidence to support the claim?) Yes or No?

Answer 1

Claim The credit card mean usage for the population is now different than $2500 per year
Null Hypothesis
Alternative Hypothesis
n 22
x-bar 2542
s 110
Level of significance As level of significance is not given we will assume it to be 5%
z or t? t distribution as population standard deviation is not given and n is less than 30
df (if none, type NA) d.f=n-1=22-1=21
Is it one tailed to the right?
Is it one tailed to the left?
Is it two tailed? It is a two tailed test
Critical value(s) The t critcal values for two tailed test,for significance level alpha 0.05, t_c=-2.08 and t_c=2.08
Test Ratio
Decision (Reject or Accept the Null Hypothesis) As t value is not in the critical region we fail to  reject the null hypothesis.
Conclusion (Is there enough evidence to support the claim?) Yes or No? No We do not have sufficient evidence to support the claim that The credit card mean usage for the population is now different than $2500 per year