Question
In: Statistics and Probability
A high street store was interested to discover if the spending of customers using credit cards...
A high street store was interested to discover if the spending of customers using credit cards is different from the spending of customers using cash. A random sample of 52 customers using credit cards for a single transaction had a mean spend of £36.43 with standard deviation £12.08. A random sample of 38 customers using cash for a single transaction had a mean spend of £31.84 with standard deviation £11.27.
A hypothesis test is to be performed to investigate whether the mean spend by customers using credit cards was equal to the mean spend by customers using cash.
(a) Using appropriate notation, which you should define, specify the null and alternative hypotheses associated with the test.
(b) Calculate the value of the estimated standard error of the difference between the sample means, as well as the value of the test statistic.
(c) Complete the hypothesis test, carefully detailing the conclusions of the test.
Solutions
orchestra answered 1 year agoRelated Solutions
(A) A major store is interested in estimating the mean amount its credit card customers spent...
(A) A major store is interested in estimating the mean amount
its credit card customers spent on their first visit to the chain's
new store. Fifteen credit card accounts (n=15) were randomly
sampled and analyzed with the following results: and S = 20. a)
Construct a 95% confidence interval for the mean amount its credit
card customers spent on their first visit to the chain's new store.
b) Interpret the results (the interval) you got.
(This is the question as...
Spending on credit cards decreases after the Christmas spending season (as measured by amount charged on...
Spending on credit cards decreases after the Christmas spending
season (as measured by amount charged on a credit card in
December). The accompanying data set contains the monthly credit
card charges of a random sample of 99 cardholders. Complete parts
a) through e) below.
December
January
1544.27
904.12
4296.56
7206.67
4231.61
4242.12
202.81
79.91
3298.24
4043.64
873.19
89.18
3810.19
3291.88
1933.67
2419.82
99.18
83.85
504.04
6.42
410.81
0.00
682.61
564.18
2161.39
2716.61
1123.94
187.14
2508.91
3268.47
1836.74
1524.15
9.95
1359.21...
Spending on credit cards decreases after the Christmas spending season (as measured by amount charged on...
Spending on credit cards decreases after the Christmas spending
season (as measured by amount charged on a credit card in
December). The accompanying data set contains the monthly credit
card charges of a random sample of 99cardholders. Complete parts
a) through e) below.
December on left and January on the right
1542.99
902.92
4301.97
7208.23
4229.48
4240.16
202.62
79.93
3298.47
4040.63
874.08
89.25
3806.31
3293.15
1934.11
2419.43
99.25
83.86
503.91
6.43
410.93
0.00
683.66
563.93
2160.65
2713.77
1123.17
187.02
2506.62...
A major department store chain is interested in estimating the average amount its credit card customers...
A major department store chain is interested in estimating the
average amount its credit card customers spent on their first visit
to the chain's new store in the mall. 15 credit card accounts
randomly sampled produced a mean of $50.50 and a standard deviation
of $20. Find a 95% confidence interval for the average amount the
credit card customers spent on their first visit to the chain's new
supply store in the mall.
A major department store chain is interested in estimating the mean amount its credit card customers...
A major department store chain is interested in estimating the
mean amount its credit card customers spent on their first visit to
the chain’s new store in the mall. Fifteen credit card accounts
were randomly sampled and analyzed with the following results: X =
$50.50 and S = 20. Assuming that the amount spent follows a normal
distribution, construct a 95% confidence interval for the mean
amount its credit card customers spent on their first visit to the
chain’s new...
You are designing process controls for the replacement of lost or stolen credit cards. Customers are...
You are designing process controls for the replacement of lost
or stolen credit cards. Customers are concerned about
responsibility for charges and quick replacement of cards. Identify
two potential control subjects that will help manage the process
while meeting customer needs. Then define a unit of measure and a
sensor for each control subject.
TRUE OR FALSE Sales to customers who use nonbank credit cards, such as American Express, are...
TRUE OR FALSE
Sales to customers who use nonbank credit cards, such as
American Express, are generally treated as credit sales.
Retailers record all credit card sales as charge sales.
The service fee that credit card companies charge retailers
varies and is the primary reason why some businesses do not accept
all credit cards.
The document issued by the seller that informs the buyer of the
details of sales returns is called a credit memorandum.
A seller may grant a...
Now that she is selling mixers and her customers can use credit cards to pay for...
Now that she is selling mixers and her customers can use credit
cards to pay for them, Natalie is thinking of upgrading her website
to include the online sale of mixers and payment by credit card.
This would enable her to sell these mixers to a wider range of
customers using the Internet. Natalie contacts her brother who
originally prepared the website for her. He agrees to upgrade the
site so it can handle credit card security issues as well...
Do the pluses of using credit cards out-weigh the minuses?
Do the pluses of using credit cards out-weigh the minuses?
Levine Company uses the perpetual inventory system and allows customers to use two credit cards in...
Levine Company uses the perpetual inventory system and allows
customers to use two credit cards in charging purchases. With the
Suntrust Bank Card, Levine receives an immediate money transfer to
its account when it processes sales receipts. Suntrust assesses a
4% service charge for credit card sales. The second credit card
that Levine accepts is the Continental Card. Levine batches its
credit sales data to Continental on a daily basis, and the money is
transferred to its account about 4...
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