Assume you are working at the Consumer Protection Agency. Recently, you have been getting complaints...

80.2K

Verified Solution

Question

Accounting

Assume you are working at the Consumer Protection Agency. Recently, you have been getting complaints about the highway gas mileage of a new minivan. The car company agrees to allow you to select randomly 41 of its new minivans to test their highway mileage. The company claims that its minivans get 28 miles per gallon on the highway. Your test results show a sample mean of 26.7 and a sample standard deviation of 4.2. Part 1 (Confidence Interval): Calculate a 95% confidence interval around your sample mean. Is the claimed mean inside your confidence interval? What does your result mean, in terms of the company's claim? Part 2 (Two-tail test): List the null and alternative hypotheses for the appropriate test. Use alpha = 0.05. Find the critical value(s) and calculate the observed value of the test statistic. Is the observed test statistic in the critical (rejection) region? Will the p-value be higher or lower than your alpha? What does this result mean, in terms of the company's claim? Part 3 (One-tail test): List the null and alternative hypotheses for the test. Use alpha = 0.05. Find the critical value and calculate the observed value of the test statistic. Is the observed test statistic in the critical region? Will the p-value be higher or lower than your alpha? What does this result mean, in terms of the company's claim?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students