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1. Tesla is a leader in the electric car industry. A competitor is investigating the efficiency of Tesla's Model S, which Tesla claims is 100
1. Tesla is a leader in the electric car industry. A competitor is investigating the efficiency of Tesla's Model S, which Tesla claims is 100 mpg-e. [Note: in order to compare the energy used by electric cars to conventional gasoline-fueled and hybrid cars, the efficiency is measured in equivalent miles-per-gallon denoted as mpg-e.] The competitor would like to test this claim against the alternative that the true efficiency is less than 100 mpg-e, at significance a = 0.05. Assume the population distribution of Model S efficiency is approximately normal. A sample of 10 cars is tested, resulting in a mean efficiency of 96.5 mpg-e and a standard deviation of 8. a) Briefly explain why a left-tailed ("less than") hypothesis test is the best choice here. b) Identify the critical region and state whether or not the null hypothesis is rejected. c) Approximate the minimum significance level with which the null hypothesis is rejected. [i.e. find the P-value.] 1) The competitor is confused by the conclusion of this hypothesis test and the relatively high P-value, since the sample mean of 96.5 mpg-e is much less than the claimed population mean of 100 mpg-e. Briefly explain this conundrum AND provide a recommendation to the competitor for a follow-up experimental study where the hypothesis test P-value is likely to be much smaller (i.e. what should they change to lower the minimum significance level for rejection of the null hypothesis?)
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