A credit card company wants to test whether, on average, male customers make larger payments on...

A credit card company wants to test whether, on average, male customers make larger payments on their outstanding credit balance each month compared to female customers. Random, independent samples of 20 males and 20 females are selected and monthly payments are compared. Average payment from males = $129.00 with a sample standard deviation of $23.90, and average payments from females = $113.00 with a sample standard deviation of $21.60 (both sigmas unknown).

a. Write out Ho and Ha to test if male customers make larger average payments.

b. Using MegaStat, calculate the p-value and provide MegaStat output for documentation. Assume the population variances are NOT equal.

c. Can we reject Ho at the 95% confidence level? Can we be 95% confident male customers make larger monthly payments than female customers? CAREFULLY EXPLAIN WHY OR WHY NOT.

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orchestra answered 1 year ago

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