Question
According to an auto insurance company's records, the average distance their customers drive to work is 17.4 miles. You are a new agent, and you
According to an auto insurance company's records, the average distance their customers drive to work is 17.4 miles. You are a new agent, and you think this is too low. Randomly poll 50 of the company's customers; the average is 18.5 miles with a standard deviation of 3.4 miles. Do these data provide enough evidence at the 0.05 level of significance to conclude that the average distance driven to work is more than 17.4 miles?
a. State the random variable and parameter.
b. State the null hypothesis, alternative hypothesis, and level of significance. (Use proper notation.)
c. State and check the assumptions for the hypothesis test.
d. State the sample statistic, test statistic, and p-value. (Note your calculator keystrokes and input - What test did you select, and what did you enter in each field? Round your results to the third decimal place.)
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