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A used car dealer says that the mean price of a three-year-old sports utility vehicle is $19,000. You suspect this claim is incorrect and find
A used car dealer says that the mean price of a three-year-old sports utility vehicle is $19,000. You suspect this claim is incorrect and find that a random sample of 21 similar vehicles has a mean price of $19,874 and a standard deviation of $1939. Is there enough evidence to reject the claim at or = 0.05? Complete parts (a) through (e) below. Assume the population is normally distributed. (a) Write the claim mathematically and identify Ho and Ha. Which of the following correctly states Ho and Ha? 1.5 A. H0: p2$19,000 ESQ B. H0: p=$19,000 E;- C. Ho: p>$19,000 Ha: u$19,000 Ha: p '13:} 3- t (c) Find the standardized test statistic t. t= (Round to two decimal places as needed.) (d) Decide whether to reject or fail to reject the null hypothesis. O A. Reject Ho because the test statistic is not in the rejection region(s). O B. Fail to reject Ho because the test statistic is in the rejection region(s). O C. Fail to reject Ho because the test statistic is not in the rejection region(s). O D. Reject Ho because the test statistic is in the rejection region(s). (e) Interpret the decision in the context of the original claim. O A. At the 5% level of significance, there is not sufficient evidence to reject the claim that the mean price is $19,000. O B. At the 5% level of significance, there is sufficient evidence to reject the claim that the mean price is $19,000. O C. At the 5% level of significance, there is not sufficient evidence to reject the claim that the mean price is not $19,000. O D. At the 5% level of significance, there is sufficient evidence to reject the claim that the mean price is not $19,000
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