Cars are known to travel an average of 20,000 kilometers per year with a standard deviation of 3,900 kilometers. A randomly selected sample of 100 car owners are asked to keep track of the kilometers they drive. Would you agree that the average is higher if the 100 records indicated an average of 23,500 kilometers? Use a significance level of 0.05.

Solution: Parameter under study: Statement of hypotheses: Significance level: Statistical: Rejection region: Decision making: Concluteon