16. The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.9 auto accidents per day with a standard deviation of. The actuaries of the company claim that the standard deviation of the number of accidents per day is no longer equal to 0.04 . Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis H0 and the alternative hypothesis H1 that we would use for this test.

17. A leasing firm claims that the mean number of miles driven annually,mean, in its leased cars is less than 13.500 miles. A random sample of 9cars leased from this firm had a mean of13.242 annual miles driven. It is known that the population standard deviation of the number of miles driven in cars from this firm is 1680miles. Assume that the population is normally distributed. Is there support for the firm's claim at thelevel 0.05 of significance?

Perform a one-tailed test. Then complete the parts below.

Carry your intermediate computations to three or more decimal places, and round your responses as specified below.

(a) State the null hypothesisand the alternative hypothesis .

(b) Determine the type of test statistic to use.

(c) Find the value of the test statistic. (Round to three or more decimal places.)

(d) Find the critical value. (Round to three or more decimal places.)

(e) Can we support the leasing firm's claim that the mean number of miles driven annually is less thanmiles?

Yes No