Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

According to a leasing rm's reports, the mean number of miles driven annually in its leased cars is 13,700 miles with a standard deviation of

image text in transcribedimage text in transcribed
According to a leasing rm's reports, the mean number of miles driven annually in its leased cars is 13,700 miles with a standard deviation of 2640 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 driven annually under the new contracts, p, is less than 13,700 miles. He takes a random sample of 31 cars under the new contracts. The cars in the sample had a mean of 12,751 annual miles driven. Assume that the population is normally distributed. Is there support for the claim, at the 0.05 level of significance, that the population mean number of miles driven annually by cars under the new contracts, is less than 13,700 miles? Assume that the population 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 places, 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. ll 0 p H : :I o 7 s 3 H1 : :I (b) Determine the type of test statistic to use. (Choose one) V =] I 5 2'3 (c) Find the value of the test statistic. (Round to three or more decimal places.) (d) Find the critical value. (Round to three or more decimal places.) (e) Can we support the claim that the population mean number of miles driven annually by cars under the new contracts is less than 13,700 miles? OYes ONo (b) Determine the type of test statistic to use. (Choose one) V Z t - test statistic. (Round to three or more decimal places.) Chi-square F

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Trigonometry

Authors: Ron Larson, Rosemarie Menager Beeley, Larson/Hostetler

8th Edition

1111789177, 9781111789176

More Books

Students also viewed these Mathematics questions

Question

Why do firms typically not switch Outsourcing partners?

Answered: 1 week ago

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago

Question

1. Effort is important.

Answered: 1 week ago