Use the following to answer the next six questions (questions 22- 28). A running

Question

Use the following to answer the next six questions (questions 22- 28). A running shoe company claims their shoe will withstand an average lifetime distance of 600 miles. For quality assurance purposes they randomly sample 45 shoes and test their wear through simulation. If the sample provides evidence the entire batch has a mean below 600 miles, they will need to further investigate the batch of shoes. Otherwise, they will prepare them for market The sample yielded an average of 581.31 miles. They know the population of all wear lifetimes varies 50 miles, on average (this is the population standard deviation). Is there evidence that they will need to further investigate the batch of shoes? Use a significance level of 0.05.

Explanation / Answer

Option 3:

H0: u=600 vs H1: u<600

Now since the company claims that their shoe will withstand an average lifetime distance of 600 miles,hence u=600 is our null hypothesis.

On the other hand since the policy of the company is that if average lifetime is less than 600,then they will go for investigation again.So u<600 is our alternate hypothesis.

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