A Manager of the Credit Department for an Oil Company

Multiple Choice

A manager of the credit department for an oil company would like to determine whether the average monthly balance of credit card holders is equal to $75. An auditor selects a random sample of 100 accounts and finds that the average owed is $83.40 with a sample standard deviation of $23.65. If you wanted to test whether the average balance is different from $75 and decided to reject the null hypothesis, what conclusion could you draw?

A) There is not evidence that the average balance is $75.
B) There is evidence that the average balance is $75.
C) There is evidence that the average balance is not $75.
D) There is not evidence that the average balance is not $75.