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10. A dealer claims the average number of cars per household in the year 2000 was higher than 2.06, with a standard deviation of 0.64.

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10. A dealer claims the average number of cars per household in the year 2000 was higher than 2.06, with a standard deviation of 0.64. A survey of 125 households finds that the mean for that sample is 2.15. Test this claim at the 2% level of significance. a. [6 pts] State the Null and Alternative hypotheses and the type of the test. b. [4 pts] Find the p-value, and determine if you are rejecting or not rejecting the Null hypothesis. Circle the correct solution. (Credit only if the p-value is correct) P = (Round p value to 4 decimals) i. Reject Null Hypothesis Fail to reject Null Hypothesis Circle one choice ii. Reject Claim Accept Claim Circle one choice c. [3 pts] Write the verbal conclusion about the claim. d. [1 pt] What happens if you test the hypothesis at 6% level of significance? Does the conclusion change? Explain why

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