Brand managers become concerned if they discover that customers are aging and gr

Question

Brand managers become concerned if they discover that customers are aging and gradually moving out of the high-spending age groups. The average buyer for a particular brand of car is 58. A new model is used to draw in younger customers. A sample of 48 purchasers of the new model has average age 48 (with standard deviation 24 ) is conducted. A test of whether the age of the purchasers of the new model are younger on average than purchasers of the brand was then conducted. If the population mean age for purchasers of the new model is 53 years (with =24 years), then what is the probability that the test procedure used in this question will fail to reject H0 if aplha=0.10 ?

The probability that the test procedure used in this question will fail to reject H0 is

1)0.715

2)0.285

3).0459

4)0.517

Explanation / Answer

z test = x-mu/(s/sqrt n)

=48-53/(24/sqrt 48)

=-5/(24/6.93)

=-1.44

p = 0.715

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