Problem regarding the credit card debt

Assignment Help Accounting Basics

Reference no: EM131008398

Credit card debt

The average household credit card debt has been reported to be between $8000 and $10,000. Often of interest is the average credit card debt carried by college students. In 2008, the average credit card debt for college students was reported to be $2200 based on 12,500 responses. A year earlier it was reported to be $2190 based on survey of 8200 college students. The standard error of the difference in mean credit card balances was $1.75.

a) Has the average credit card balance carried by college students increased significantly? Cite appropriate statistical evidence to support your conclusion.

b) Is this a meaningful difference to the typical student? Is it meaningful to a credit card company?

c) The sample size in 2008 is one and a half times that in 2007. Does this make the results more or less convincing? Explain.

Reference no: EM131008398

Questions Cloud

Construct a cumulative relative frequency plot : If the pacemaker must be replaced as soon as the ?rst electrical malfunction occurs, approximately what proportion required replacement between 1 and 2 years after implantation?

Describe an exception to this generalization : Describe an exception to this generalization. What is the essential characteristic of the transaction that qualifies as an exception?

Credit card debt public or private : The average credit card debt carried by college students was compared at public versus private universities. It was reported that a significant difference existed between the two types of institutions and that students at private universities carr..

Find an eigenvector corresponding to one of the eigenvalues : Find an eigenvector v1 corresponding to one of the eigenvalues. Find an eigenvector v3 corresponding to the remaining eigenvalue. Calculate v1 · v3. Are v1 and v2 linearly independent, orthogonal, both, or neither?

Problem regarding the credit card debt : The average household credit card debt has been reported to be between $8000 and $10,000. Often of interest is the average credit card debt carried by college students. In 2008, the average credit card debt for college students was reported to be ..

Differences between cash flows from operating activities : What are the differences between cash flows from operating activities and the elements of an income statement?

Assumptions for inference : a) Suppose one analyst conducts a two-sample hypothesis test to see if memory of brands advertised during violent TV shows is higher 24 hours later. The P-value is 0.00013. What might she conclude? b) Explain why her procedure was inappropriate. W..

How to grow market share : The managerial question is to investigate the potential for a new Business Model and what needs to be done to launch it successfully (or why the Business Model should not be pursued at this time).

Mean number of brand names : Find a 95% confidence interval for the difference in mean number of brand names remembered between the groups watching shows with sexual content and those watching neutral shows. Interpret your interval in this context.

User Account

All Pages