In 2008, a small dealership leased 21 Subaru Outbacks on 2-year leases. When the

Question

In 2008, a small dealership leased 21 Subaru Outbacks on 2-year leases. When the cars were returned in 2010, the mileage was recorded (see below).

Is the dealer's mean significantly greater than the national average of 30,707 miles for 2-year leases? Using the 10 percent level of significance, choose the appropriate hypothesis.

Calculate the test statistic. (Round your answer to 2 decimal places.)

The dealer's cars show a significantly greater mean number of miles than the national average at the 10 percent level.

In 2008, a small dealership leased 21 Subaru Outbacks on 2-year leases. When the cars were returned in 2010, the mileage was recorded (see below).

Explanation / Answer

Ans:

From abov data:

sample mean=34118.67

sample standard deviation,s=12560.7

sample size,n=21

df=21-1=20

critical t value=1.325

Option A is correct.

H0: 30,707 miles vs. H1: > 30,707 miles, reject H0 if tcalc > 1.3250

b)Test statistic:

t=(34118.67-30707)*sqrt(21)/12560.7=1.24

c)As,t=1.24<1.325,we fail to reject H0.

We have insufficient evidence to conclude that the dealer's cars show a significantly greater mean number of miles than the national average at the 10 percent level.

No.

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