55. Maintenance costs. A limousine company is concerned with increasing costs of maintaining their fleet of 150
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55. Maintenance costs. A limousine company is concerned with increasing costs of maintaining their fleet of 150 cars.
After testing, the company found that the emissions systems of 7 out of the 22 cars they tested failed to meet pollution control guidelines. They had forecasted costs assuming that a total of 30 cars would need updating to meet the latest guidelines. Is this strong evidence that more than 20% of the fleet might be out of compliance? Test an appropriate hypothesis and state your conclusion. Be sure the appropriate assumptions and conditions are satisfied before you proceed.
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Related Book For
Business Statistics
ISBN: 9780321716095
2nd Edition
Authors: Norean D. Sharpe, Paul F. Velleman, David Bock, Norean Radke Sharpe
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