Question

anufacturer claims that your new car gets 32 mpg on the highway. You suspect that the mpg is a different number for your car.
ance of a Type I error. i. Interpret the level of significance in the context of the study. There is a 1% chance that you own
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Answer #1

Let the variable under interest is mpg for a car.

It is given that the sample of 52 strips on highway was taken resulted in the average X = 26.9 mpg and standard deviation S = 12.6 mpg.

We want to check the manufacturer's claim that the new car gets 32 mpg on highway at level of significance \alpha = 0.01

a) -

As the population standard deviation is not given we cannot use Z-test.

For this study, we should use One-sample t-test.

b) -

The null and alternative hypothesis would be
H_0:\mu=32

H_a:\mu\neq 32

c) -

The test statistic: T=\frac{\bar X-\mu}{s/\sqrt{n}}=\frac{26.9-32}{12.6/\sqrt{52}}=-2.91877=-2.919

d) -

Under null hypothesis, the test statistic T follows t-distribution with n-1=52-1=51 degrees of freedom

Also notice that this is two-sided test

P-value = P[ |t51| > 2.919 ] = 2P[ t51> 2.919] = 0.0052

e) -

The p-value is smaller than \alpha

f) -

We reject H0, at \alpha level of significance if p-value<\alpha

Based on this, we should reject the null hypothesis.

g) -

Thus, the final conclusion is that the data suggest that the population mean is significantly different from 32 at \alpha = 0.01, so there is statistically significant evidence to conclude that the population mean mpg for your car on the highway is different from 32.

h) - Interpret the p-value

If the population mean mpg for you car on the highway is 32 and if you take another 52 strips on the highway, then there would be 0.52178572% chance that the sample mean for these 52 highway strips would either be less than 26.9 or greater than 37.1

i) - Interpret the level of significance

If the population mean mpg for your car on the highway is 32 and if you take another 52 trips on the highway then there would be 1% chance that we would end up falsely concluding that the population mean mpg for your car on the highway is different from 32.

I hope you find the solution helpful. If you have any doubt then feel free to ask in the comment section. Please do not forget to vote the answer. Thank you in advance!!!

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