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Accordi V a leasing firm's reports, the mean number of miles driven annually in its leased cars is 12,680 miles with a standard deviation of
Accordi V a leasing firm's reports, the mean number of miles driven annually in its leased cars is 12,680 miles with a standard deviation of 1220 miles. The company recently starting using new contracts which require customers to have the cars serviced at their own expense. The company's owner believes the mean number of miles dn'ven annually under the new contracts, p, is less than 12,680 miles. He takes a random sampLe of 44 cars under the new contracts. The cars in the sample had a mean of 12,534 annual miles driven. Assume that the mpulation is normally distributed. Is there support for the claim, at the 0.01 level of significance, that the ppulation mean number of miles driven annually by cars under the new contracts, is less than 12,680 miles? Assume that the p_opulation standard deviation of miles driven annually was not affected by the change to the contracts. Perform a onetailed test. Then complete the parts below. Carry your intermediate computations to three or more decimal placesr and round your responses as specified below. (If necessary, consult a list of formulas.) (a) State the null hypothesis H0 and the alternative hypothesis H1. l1 0' P H: 0E , 5 3 Hl:|: (b) Determine the type of test statistic to use. (Choose one} V EI=EI DSEI EIZEI (c) Find the value of the test statistic. (Round to three or more decimal places.) I] (d) Find the critical value. [Round to three or more decimal places.) X b I] (e) Can we support the claim that the population mean number of miles driven annually by cars under the new contracts is less than 12,680 miles? OYes O No
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