Solution:-
1) We are testing population mean.
2) H0 : The average fuel economy of all Japanese car is 20.1 mpg.
3) HA : The average fuel economy of all Japanese car is greater than 20.1 mpg
4) We assume that the sample is SRS and we assume that the population distribution of Japanese cars has no outliers.
5)
We will do a one-sample z-test procedure, because the sample size is large enough.
z = 15.15
p-value is less than 0.0001.
6) If the average fuel economy is 20.1, then due to the sampling error alone 0.00 of all possible sample mean fuel economies are expected to be equal to or greater than 30.5 mpg, when the sample consists of 79 cars each.
This strongly suggests that the average economy of all the Japanese cars is greater than 30.5.
If we are making an error here, we might have committed type I error.
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