A car dealer at Acme Motors claims that the average price of cars on his lot is not equal to$

12200

$

12200

. Assuming that the population is normally distributed and the population standard deviation is$

517

$

517

. Test the dealer's claim at a 0.02 significance level.

a.) The null and alternative hypothesis would be:

H

0

:

p

=

12200

H

0

:

p

=

12200

H

a

:

p

12200

H

a

:

p

12200

H

0

:

=

12200

H

0

:

=

12200

H

a

:

<

12200

H

a

:

<

12200

H

0

:

p

=

12200

H

0

:

p

=

12200

H

a

:

p

>

12200

H

a

:

p

>

12200

H

0

:

p

=

12200

H

0

:

p

=

12200

H

a

:

p

<

12200

H

a

:

p

<

12200

H

0

:

=

12200

H

0

:

=

12200

H

a

:

12200

H

a

:

12200

H

0

:

=

12200

H

0

:

=

12200

H

a

:

>

12200

H

a

:

>

12200

b.) The test is:

two-tailed

right-tailed

left-tailed

Based on a sample of 50 cars, you find the average price of the sample of cars on the lot to be$

12696

$

12696

c.) This hypothesis test is for the...

• Mean with the population standard deviationknownusing the Z-test statistic
• Proportion using the Z-test statistic
• Mean with the poulation standard deviationknownusing the t-test statistic
• Proportion using the t-test statistic
• Mean with the population standard deviationunknownusing the t-test statistic
• Mean with the population standard deviationunknownusing the Z-test statistic

d.) The test statistic is:(to 2 decimals)

e.) At

=

=

0.02, the critical value is:

(to 3 decimals)