A limousine company is concerned with increasing costs of maintaining their flee
ID: 3042567 • Letter: A
Question
A limousine company is concerned with increasing costs of maintaining their fleet of 150 cars. After testing, the company found that the emissions systems of 25 out of the 28 cars they tested failed to meet pollution control guidelines. They had forecasted costs assuming that a total of 18 cars would need updating to meet the latest guidelines. Is this strong evidence that more than 12 % of the fleet might be out of compliance? Test an appropriate hypothesis and state your conclusion. Be sure the appropriate assumptions and conditions are satisfied before you proceed.
What are the null and alternative hypotheses?
A. H0 : pgreater than0.12 vs. HA : pequals0.12
B. H0 : pequals0.12 vs. HA : pgreater than0.12
C. H0 : pequals0.12 vs. HA : pless than0.12
D. H0 : pless than0.12 vs. HA : pequals0.12
What is the value of the test statistic?
A. The test statistic is ___ . (Round to two decimal places as needed.) B. The assumptions and conditions are not met , so the test cannot proceed.
What is the P-value of the test statistic?
A. P-value equals _____(Round to three decimal places as needed.)
B. The assumptions and conditions are not met , so the test cannot proceed.
What is your conclusion? Assume alphaequals0.05. Choose the correct answer below.
A. This is strong evidence that more than 12 % of the fleet is out of compliance.
B. This is strong evidence that less than 12 % of the fleet is out of compliance.
C. This is not strong evidence that more than 12 % of the fleet is out of compliance.
D. The assumptions and conditions are not met , so the test cannot proceed.
Explanation / Answer
D. H0 : pless than0.12 vs. HA : pequals0.12
p1=25/28=0.892
p2=0.12
The Z-Score is 8.7707. The p-value is 0. The result is significant at p <0.05.
A. This is strong evidence that more than 12 % of the fleet is out of compliance.
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