section_problems_11

# section_problems_11 - 1 Section Problems#11 Note that there...

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Section Problems #11 Note that there are two pages to this problem set. from book: 7.38 (page 445) Use df=1000. Round your answers to four decimal places. #1) You will have complete sales information for last month in a week, but right now you have data from a random sample of 41 stores. The mean change in sales in the sample x = -4 % and the standard deviation of the changes s = 11%. The population distribution is roughly normal. You have reason to believe that sales were down last month due to an aggressive advertising campaign by a competitor. Here are the null and alternative hypotheses: H 0 : μ = 0 H a : μ < 0 a) What is the t statistic? Round your answer to three decimal places. b) According to a table from the book, what is the lowest significance level (smallest α value) at which you would reject the H 0 ? #2) A bank wonders whether omitting the annual credit card fee for customers who charge at least \$3000 in a year would increase the amount charged on its credit card. The bank makes this offer to an SRS of 1001 of its existing credit card customers.

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