Question

For questions 20 – 23 answer all the following questions:

a)State the Null and Alternate Hypotheses

b) Which is the claim?
c) Describe the reject region as left tailed, right tailed or two-tailed.

d) Will you use a z-test or a t-test? What is the critical value?

e) Find the sample statistic.

f) Do you reject or fail to reject the claim? Write out your decision in at least one sentence.

22. A used car dealer says that the mean price of all 2009 Toyota Camry in Atlanta is at least $16,200. To test this claim you search the Internet and get the prices of a random sample of 14, of these cars available in Atlanta. The mean price of these cars is $15,999 with a standard deviation of $1057. Is there enough evidence to reject the dealer’s claim at the 5% significance level? Assume the population is normal.

Answer 1

It is right tailed test

To Test :-

H0 :-  

H1 :-  

Test Statistic :-


t = -0.7115

Test Criteria :-
Reject null hypothesis if
Critical region

Result :- Fail to reject null hypothesis

Decision based on P value
P - value = P ( t > 0.7115 ) = 0.7553
Reject null hypothesis if P value < level of significance
P - value = 0.7553 > 0.05 ,hence we fail to reject null hypothesis
Conclusion :- Fail to reject null hypothesis

There is sufficient evidence to reject the claim that 2009 Toyota Camry in Atlanta is at least $16,200.