Fuel price hikes not only directly increases the cost of running a vehicle. It also increases the passengers' commuting charges and the prices of many other essential commodities. The owner of a coach company, which operates trips to nearby cities, wishes to monitor the fuel efficiency for the company. He sets a goal of attaining an average of at least 12 km per litre. To see if the goal is being attained, he checks the fuel usage for a randomly chosen sample of 8 trips. The mean is found to be 11.02 km per litre, with a sample standard deviation of 1.83 km per litre. The fuel usage is assumed to be normally distributed. At 5% significance level, is there enough evidence to suggest that mean fuel usage of the company is less efficient than the owner's target of 12 km per litre?

State the null hypothesis.

State the alternative hypothesis.

Is this a one-tailed or two-tailed test?

State the critical value.

Calculate the test value.

State the decision.

Justify your choice of decision in previous part.

There is enough evidence to conclude that the mean fuel usage of the company is less efficient than the owner's target of 12 km per litre. Is the statement true or false?

The owner of a coach company has 5% chance of rejecting the null hypothesis when it is true. Is the statement true or false?

Why do you think t-value is used in this hypothesis test?

ANSWER OPTIONS TO BE CHOSEN FROM BELOW:

A.	population mean is known
B.	The test value falls outside of the non-critical region.
C.	one-tailed test
D.	12
E.	1.5147
F.	Do not reject the null hypothesis.
G.	population standard deviation is unknown
H.	True
I.	two-tailed test
J.	- 1.5147
K.	1.8595
L.	< 12
M.	population standard deviation is known
N.	The test value falls in the non-critical region.
O.	12
P.	> 12
Q.	- 1.8946
R.	Reject the null hypothesis.
S.	False
T.	2.3646