Question: A financial services institution claims that the median credit card debt among families with annual earnings of $10,000 to $24,999 is more than $1200. The credit card debts (in thousands of dollars) among 13 randomly selected families are listed below. At α = 0.01, can you support the institution's claim?

1.97 1.10 1.02 1.05 0.98 1.36 1.74
1.69 1.48 0.99 1.29 0.92 1.45

Use a sign test to test the claim by doing the following:

A. Write the claim mathematically and identify Ho and Ha.

B. Determine the critical value.

C. Calculate test statistics.

D. Decide whether to reject or fail to reject the null hypothesis.

E. Interpret the decision in the context of the original claim.