A corporation maintains a large fleet of company cars for itssalespeople. To che

Question

A corporation maintains a large fleet of company cars for itssalespeople. To check the average number of miles driven per monthper car, a random sample of n = 31 cars is examined. Themean and standard for the sample are 2,752 and 350 miles,respectively. Records for previous years indicate that the averagenumber of miles driven per car per month was 2,600. Use the sampledata to test the hypothesis that the current mean differs from2,600. Set C = 95% and assume that can beestimated by s.

(a) Sketch the sampling distribution of Xbar.

(b) State the null and alternative hypotheses.

(c) Calculate the t test statistic.

(d) Calculate the p-value for this statistic.

(e) Clearly state your conclusion about the statisticalsignificance of the test. Do you reject or fail to reject the nullhypothesis?

Explanation / Answer

(b) The test hypothesis is Ho:=2600 (null hypothesis) Ha: not equal 2600 (alternative hypothesis)

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