Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. According to a report, the average cost to rent a full-size car is $150 per day. Suppose that the distribution of this rental cost

image text in transcribed

image text in transcribed
4. According to a report, the average cost to rent a full-size car is $150 per day. Suppose that the distribution of this rental cost is normally distributed with a population standard deviation of $14.80. Answer the following questions. a. What is the probability that a randomly selected rental car costs more than $160 per day? (1 Mark) b. What is the probability that a randomly selected rental car costs between $170 and $105 per day? (2 Marks) c. What is the cut-off cost for the rental car if only 10% of middle-income Malaysian (M40) afford to pay? (2 Marks) ['l'otal: 5 Marks] 5. The researcher would like to test the hypothesis that the average monthly wage for recent college graduates is less than $2000. A random sample of 19 recent college graduates averaged $1900 per month with a standard deviation of $350.50 per month. Test the researchers claim using c = 0.10 that the average monthly wage of college graduates is less than $2000. Answer the following questions. a. identify the claim and state the Ho and H1. (1 Mark) b. Find the critical value. (1 Mark) c. Calculate the test statistic. (1 Mark) d. Make a decision to reject or fail to reject the He. (1 Mark) e. interpret the decision in the context of the original claim. (1 Mark) [Totalz 5 Marks] 6. Researchers suspect that 13% of all high school students smoke at least one pack of cigarettes a day. At St. John nghschool, a randomly selected sample of 300 students found that 50 students smoked at least one pack of cigarettes a day. Use o=0.05 to determine that the proportion of high school students who smoke at least one pack of cigarettes a day is less than 18%. Answer the following questions. a. Identify the claim and state the Ho and H1. (1 Mark) b. Find the critical value. (1 Mark) c. Calculate the test statistic. (1 Mark) d. Make a decision to reject or fail to reject the Ho. (1 Mark) e. Interpret the decision in the context of the original claim. (1 Mark) [Total: 5 Marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

10th edition

78025621, 978-0078025624

Students also viewed these Mathematics questions