Q1) The head of marketing at is keen in evaluating if the average income of its credit card holders has increased over the past 13 years. When the credit cards were first marketed (in 1994), the mean income of all card holders was equal to $60,000pa.
Data were collected recently, and used to conduct a hypothesis test. The null hypothesis of
was tested against a right tailed alternative, a p-value of 0.0080 was found.
According to the results of this hypothesis test, which of the following is the most appropriate conclusion?
a. There is a 0.8% chance that average income of card holders is now more than $60,000. b. 99.2% of card holders now have an income above $60,000. c. There is evidence suggesting that average income of card holders is now more than $60,000. d. There is a 0.8% chance that average income of card holders is now equal to $60,000.
Q2) The significance level of a hypothesis test is always able to be set by the tester.
a. True b. False