Answered step by step
Verified Expert Solution
Question
1 Approved Answer
4. The manager of a car rental firm claims that the average kilometers traveled per day by each of its cars rented in Ankara
4. The manager of a car rental firm claims that the average kilometers traveled per day by each of its cars rented in Ankara is differs from 70km. To justify this claim they collected a random sample of 25 cars. The sample yields an average of 85.5kms per day and the population standard deviation is known as 19.3kms per day. It is assumed that the kilometers traveled is normally distributed. a) (5 pts) Construct a hypothesis test that can be used to help the manager test their claim. State your null hypothesis and alternative hypothesis in terms of the relevant population parameter. b) (5 pts) Test the hypotheses constructed in part (a) using a significance level of 0.01. State your conclusion also in words. Use critical value approach. c) (5 pts) Suppose that in reality, the average traveled distance is 82 kilometers. Calculate the type 2 error probability using a significance level of 0.01. d) (5 pts) Find the sample size required to detect an actual average traveled distance of 82 kilometers with probability 0.95 when the significance level is set at 0.01.
Step by Step Solution
★★★★★
3.41 Rating (157 Votes )
There are 3 Steps involved in it
Step: 1
Mean 70 Sample size n25 x bar855km 193 aNull hypothesis states that the population ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started