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Problem 4 [25 points]: A study was conducted to understand how American college students manage their finances. Each person in a representative sample of 600 college students was asked if they had one or more credit cards. If so, whether they paid their balance in full each month. There were 400 who did not pay balance in full each month. For this sample of 400 students, the sample mean credit card balance was reported to be $850. For purposes of this exercise, assume population standard deviation is $250. Is there convincing evidence that college students who do not pay their credit card balance in full each month have a mean balance that is different than $820 at 0.02 level of significance?   This Problem Description applies to all the Questions 1 through 25 below. Note: To make it convenient for you, I have copied this problem description into the questions below wherever you need it. That way you can limit scrolling up-and-down and it will save time for you.   You will earn these points ONLY  if I see you actually (and NOT pretend to) work on this problem in EXCEL in your Honorlock recording and your answers for the questions match with your answers with Excel functions in your Excel file. If I don’t see you work in Excel (wherever relevant) in the Honorlock recording, you will earn Zero points.

A study was conducted to understand how American college students manage their finances. Each person in a representative sample of 600 college students was asked if they had one or more credit cards. If so, whether they paid their balance in full each month. There were 400 who did not pay balance in full each month. For this sample of 400 students, the sample mean credit card balance was reported to be $850. For purposes of this exercise, assume population standard deviation is $250. Is there convincing evidence that college students who do not pay their credit card balance in full each month have a mean balance that is different than $820 at 0.02 level of significance? What is the appropriate Null Hypothesis (H0) for this problem?

A study was conducted to understand how American college students manage their finances. Each person in a representative sample of 600 college students was asked if they had one or more credit cards. If so, whether they paid their balance in full each month. There were 400 who did not pay balance in full each month. For this sample of 400 students, the sample mean credit card balance was reported to be $850. For purposes of this exercise, assume population standard deviation is $250. Is there convincing evidence that college students who do not pay their credit card balance in full each month have a mean balance that is different than $820 at 0.02 level of significance? Based on the given problem description, it is safe to assume that the shape of the population distribution is ________________.

A study was conducted to understand how American college students manage their finances. Each person in a representative sample of 600 college students was asked if they had one or more credit cards. If so, whether they paid their balance in full each month. There were 400 who did not pay balance in full each month. For this sample of 400 students, the sample mean credit card balance was reported to be $850. For purposes of this exercise, assume population standard deviation is $250. Is there convincing evidence that college students who do not pay their credit card balance in full each month have a mean balance that is different than $820 at 0.02 level of significance? What is your Hypothesis Test Decision under the Critical-value approach and why?  

A study was conducted to understand how American college students manage their finances. Each person in a representative sample of 600 college students was asked if they had one or more credit cards. If so, whether they paid their balance in full each month. There were 400 who did not pay balance in full each month. For this sample of 400 students, the sample mean credit card balance was reported to be $850. For purposes of this exercise, assume population standard deviation is $250. Is there convincing evidence that college students who do not pay their credit card balance in full each month have a mean balance that is different than $820 at 0.02 level of significance? What is the 98% Confidence Interval on Mu (rounded to two digits after the decimal) for this problem based on the information provided?  

A study was conducted to understand how American college students manage their finances. Each person in a representative sample of 600 college students was asked if they had one or more credit cards. If so, whether they paid their balance in full each month. There were 400 who did not pay balance in full each month. For this sample of 400 students, the sample mean credit card balance was reported to be $850. For purposes of this exercise, assume population standard deviation is $250. Is there convincing evidence that college students who do not pay their credit card balance in full each month have a mean balance that is different than $820 at 0.02 level of significance? What is rejection criteria under the Confidence Interval approach in this Hypothesis Test?

A study was conducted to understand how American college students manage their finances. Each person in a representative sample of 600 college students was asked if they had one or more credit cards. If so, whether they paid their balance in full each month. There were 400 who did not pay balance in full each month. For this sample of 400 students, the sample mean credit card balance was reported to be $850. For purposes of this exercise, assume population standard deviation is $250. Is there convincing evidence that college students who do not pay their credit card balance in full each month have a mean balance that is different than $820 at 0.02 level of significance? What does the parameter “Mu” stands for in this Hypothesis Testing problem?

A study was conducted to understand how American college students manage their finances. Each person in a representative sample of 600 college students was asked if they had one or more credit cards. If so, whether they paid their balance in full each month. There were 400 who did not pay balance in full each month. For this sample of 400 students, the sample mean credit card balance was reported to be $850. For purposes of this exercise, assume population standard deviation is $250. Is there convincing evidence that college students who do not pay their credit card balance in full each month have a mean balance that is different than $820 at 0.02 level of significance? Are your decisions under the p-value, Critical-value, and Confidence Interval approaches to this Hypothesis Test, the same or different?  

A study was conducted to understand how American college students manage their finances. Each person in a representative sample of 600 college students was asked if they had one or more credit cards. If so, whether they paid their balance in full each month. There were 400 who did not pay balance in full each month. For this sample of 400 students, the sample mean credit card balance was reported to be $850. For purposes of this exercise, assume population standard deviation is $250. Is there convincing evidence that college students who do not pay their credit card balance in full each month have a mean balance that is different than $820 at 0.02 level of significance? What is your Hypothesis Test Decision under the Confidence Interval approach for this problem and why?

A study was conducted to understand how American college students manage their finances. Each person in a representative sample of 600 college students was asked if they had one or more credit cards. If so, whether they paid their balance in full each month. There were 400 who did not pay balance in full each month. For this sample of 400 students, the sample mean credit card balance was reported to be $850. For purposes of this exercise, assume population standard deviation is $250. Is there convincing evidence that college students who do not pay their credit card balance in full each month have a mean balance that is different than $820 at 0.02 level of significance? What is your conclusion based on the decisions under p-value, Critical-value, and Confidence Intervals approaches for this Hypothesis Test? Choose the best option among the following.