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Based on information from the Federal Highway Administration web site, the average annual miles driven per...

Based on information from the Federal Highway Administration web site, the average annual miles driven per vehicle in the United States is 13.5 thousand miles. Assume σ ≈ 700 miles. Suppose that a random sample of 41 vehicles owned by residents of Chicago showed that the average mileage driven last year was 13.2 thousand miles. Would this indicate that the average miles driven per vehicle in Chicago is different from (higher or lower than) the national average? Use a 0.05 level of significance.

What are we testing in this problem?

single proportionsingle mean    

(a) What is the level of significance?

math   Statistics-And-Probability   
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Answer #1

In the given scenario, we are testing for Single mean.

a) From the given information,

Level of significance = 0.05

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