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Using the t-Test for mean mu, sigma unknown A used car dealer says that the mean price of used cars sold in the last 12
- Using the t-Test for mean mu, sigma unknownA used car dealer says that the mean price of used cars sold in the last 12 months is at least $21,000. You suspect this claim is incorrect and find that a random sample of 14 used cars sold in the last 12 months has a mean price of $19,189 and a standard deviation of $2,950. Is there enough evidence to reject the dealer's claim at =0.05? Assume the population is normally distributed.
- State the null and alternative hypothesis
- Identify the degree of freedom
- Determine the critical value by using t-Table
- Determine the rejection region
- Find the standardized test statistic
- Make a decision to reject or fail to reject the null hypothesis
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