Companies often develop and test hypotheses about theirproducts. For example, car manufacturers will test their cars todetermine fuel efficiency and miles per gallon. To ensure thatproducts are safe and that they perform as advertised, regulatoryand consumer protection groups also test companies’ claims.

For this Assignment, you are working at a firm that conductsindependent testing for heavy industry. Recently, an automobilemanufacturer has been in the news for complaints about the highwaygas mileage of their latest model minivan. You receive a contractfrom a consumer action group to test and write a report on thecompany’s claim that its minivans get 28 miles per gallon on thehighway. The car company agrees to allow you to select randomly 35low-mileage fleet minivans to test their highway mileage. Your testresults gave you the following data:

29.7    24.5     27.1    29.8     29.2    27.0     27.8    24.1     29.3

           25.9     26.2    24.5     32.8    26.8     27.8    24.0     23.6    29.2

           26.5     27.7    27.1     23.7    24.1     27.2    25.9     26.7    27.8                

           27.3     27.6    22.8     25.3    26.6     26.4    27.1     26.1

Complete the following and include your results and responses inyour report (use alpha = 0.05):

• List the null and alternative hypotheses for the two-tail testfor the mean. Calculate the observed value of the test statisticand the associated p-value. (75–150 words, or 1–2 paragraphs)
  • Is the observed test statistic in the critical region? Is thep-value higher or lower than your alpha? (75–150 words, or 1–2paragraphs)
  • Note: Include your calculations. If yourcalculations are submitted separately, make note of where they canbe found.
• List the null and alternative hypotheses for the one-tail testof the mean. Calculate the observed value of the test statistic andthe associated p-value. (75–150 words, or 1–2 paragraphs)
  • Is the observed test statistic in the critical region? Will thep-value be higher or lower than your alpha? (75–150 words, or 1–2paragraphs)
  • Note: Include your calculations. If yourcalculations are submitted separately, make note of where they canbe found.

Conclusions

In your report, use the confidence interval information and theresults of the hypothesis testing to provide support for yourconclusions and recommendations to the company. Specifically:

Question 1. What conclusions did you reach?What did you learn about the situation by using each method? Didone method offer more conclusive proof than another? (150–225words, or 2–3 paragraphs)

Question 2. Based on your results, do yousupport the company’s claim that their minivans get 28 miles pergallon? (75 words, or 1 paragraph)

Question 3. Summarize the details of your testmethods and the results from each statistical method you used.Explain the findings so that executives from both the agency andthe company can understand your conclusion. (150–225 words, or 2–3paragraphs)

Question 4. Finally, present recommendationsfor actions that the company might take to use your findings tobetter serve their customers in the future. (75 words, or 1paragraph)