Please show all work and explain A company with a large fleet of cars hopes to k

Question

Please show all work and explain A company with a large fleet of cars hopes to keep gasoline costs down and sets a goal of obtaining a licet with an average gas mileage of 26 miles per gallon. To see if the goal is being met. they check the gasoline usage for 50 company trips chosen at random. The sample of size 50 trips yielded a sample mean of 25.02 mpg and a sample standard deviation of 4.83 mpg. Using the p-value approach, test at the.05 significance level if the company's fleet is averaging less than 26 mpg. Using the p-value approach, retest at alpha =.01

Explanation / Answer

a)the null hypothesis = H0 = u = 26

the alternate hypothesis = Ha = u<26

test static = (25.02 - 26)/(4.83/sqrt(50))

= -1.43

the p value for -1.43 = 0.0764

as the significance level = 0.05

therefore the p value is greater then the significance level hence we will reject the null hypothesis

b) all things will remain samethe

p value = 0.0764

the significance level = 0.01

hence again the p value is greater then the significance level therefore we will reject the null hypothesis

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