Question

A leasing firm claims that the mean number of miles driven annually, H, in its leased cars is less than 13420 miles. A random sample of 25 cars leased from this firm had a mean of 13149 annual miles driven. It is known that the population standard deviation of the number of miles driven in cars from this firm is 1260 miles. Assume that the population is normally distributed. Is there support for the firm's claim at the 0.05 level of significance? Perform a one-tailed test. Then fill in the table below. Carry your intermediate computations to at least three decimal places, and round your responses as specified in the table. a р 1 The null hypothesis IX $ ce The alternative hypothesis min D-DOO OD The type of test statistics ✓ Coronel CN square D DOO > The value of the test statistic (Round to at least three decimal places) х ? The critical value at the 0.05 level of significance 0 (Round to at least three decimal places.) Can we support the leasing firm's claim that the mean number of miles driven annually is less than 13420 miles? Yes No

Answer 1

0 Solution's Here we have to find null and alternative hypothesis test. From the given data we have до 13420 Sample mean ã'. 13149 n=25 Standard deviation 'c': 1260 The null hypothesis toil=lo The alternative hypothesis till allo The type of test statistic: Z test statistic. Test statistic z x-lo olan 13149- 13420 1260/125 -211 252 -1.075 The value of the test statistic is = -1.075

Given d -0.05 The critical value at the 0.05 level of Significance Z2 1.645) P-value - 0.1412 P-value > 2 (0.05) so,u we do not refect Ho. -> Here le can support the leasing firm's claim that the mean number of miles driven annually is less than 134 20 miles. NO This option is correct.