Suppose an automobile manufacturer introduces a new model that has an advertised mean in-city mileage of 27
Question:
Suppose an automobile manufacturer introduces a new model that has an advertised mean in-city mileage of 27 miles per gallon. Although such advertisements seldom report any measure of variability, suppose you write the manufacturer for the details of the tests, and you find that the standard deviation is 3 miles per gallon. This information leads you to formulate a probability model for the random variable x, the in-city mileage for this car model. You believe that the probability distribution of x can be approximated by a normal distribution with a mean of 27 and a standard deviation of 3.
a. If you were to buy this model of automobile, what is the probability that you would purchase one that averages less than 20 miles per gallon for in-city driving? In other words, find P(x < 20).
b. Suppose you purchase one of these new models and it does get less than 20 miles per gallon for in-city driving. Should you conclude that your probability model is incorrect?
Step by Step Answer:
Statistics For Business And Economics
ISBN: 9781292227085
13th Global Edition
Authors: Terry Sincich James Mcclave, P. George Benson