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According to a leasing firm's reports, the mean number of miles driven annually in its leased cars is 13,480 miles with a standard deviation of 1560 miles. The company recently starting using new contracts which require customers to have the cars serviced at their own expense. The company's owner believes the mean number of miles driven annually under the new contracts, μ, is less than 13,480 miles. He takes a random sample of 150 cars under the new contracts. The cars in the sample had a mean of 13,260 annual miles driven. Is there support for the claim, at the 0.01 level of significance, that the population mean number of miles driven annually by cars under the new contracts, is less than 13,480 miles? Assume that the population standard deviation of miles driven annually was not affected by the change to the contracts.

According to a leasing firm's reports, the mean number of miles driven annually in its leased cars is 13,480 miles with a standard deviation of 1560 miles. The company recently starting using new contracts which require customers to have the cars serviced at their own expense. The company's owner believes the mean number of miles driven annually under the new contracts, μ, is less than 13,480 miles. He takes a random sample of 150 cars under the new contracts. The cars in the sample had a mean of 13,260 annual miles driven. Is there support for the claim, at the 0.01 level of significance, that the population mean number of miles driven annually by cars under the new contracts, is less than 13,480 miles? Assume that the population standard deviation of miles driven annually was not affected by the change to the contracts.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 7PPS
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According to a leasing firm's reports, the mean number of miles driven annually in its leased cars is 13,480 miles with a standard deviation of 1560 miles. The company recently starting using new contracts which require customers to have the cars serviced at their own expense. The company's owner believes the mean number of miles driven annually under the new contracts, μ, is less than 13,480 miles. He takes a random sample of 150 cars under the new contracts. The cars in the sample had a mean of 13,260 annual miles driven. Is there support for the claim, at the 0.01 level of significance, that the population mean number of miles driven annually by cars under the new contracts, is less than 13,480 miles? Assume that the population standard deviation of miles driven annually was not affected by the change to the contracts. Perform a one-tailed test. Then complete the parts below. Carry your intermediate computations to three or more decimal places, and round your responses as specified below. (If necessary, consult a list of formulas.) (a) State the null hypothesis Ho and the alternative hypothesis H₁. H:0 H₁ :0 (b) Determine the type of test statistic to use. (Choose one) ▼ (c) Find the value of the test statistic. (Round to three or more decimal places.) 0 (d) Find the p-value. (Round to three or more decimal places.) (e) Can we support the claim that the population mean number of miles driven is less than 13,480 miles? I |x X 0=0 0#0 X O S 050 0<0 Р <Q 020 Ś 0>0
Transcribed Image Text:According to a leasing firm's reports, the mean number of miles driven annually in its leased cars is 13,480 miles with a standard deviation of 1560 miles. The company recently starting using new contracts which require customers to have the cars serviced at their own expense. The company's owner believes the mean number of miles driven annually under the new contracts, μ, is less than 13,480 miles. He takes a random sample of 150 cars under the new contracts. The cars in the sample had a mean of 13,260 annual miles driven. Is there support for the claim, at the 0.01 level of significance, that the population mean number of miles driven annually by cars under the new contracts, is less than 13,480 miles? Assume that the population standard deviation of miles driven annually was not affected by the change to the contracts. Perform a one-tailed test. Then complete the parts below. Carry your intermediate computations to three or more decimal places, and round your responses as specified below. (If necessary, consult a list of formulas.) (a) State the null hypothesis Ho and the alternative hypothesis H₁. H:0 H₁ :0 (b) Determine the type of test statistic to use. (Choose one) ▼ (c) Find the value of the test statistic. (Round to three or more decimal places.) 0 (d) Find the p-value. (Round to three or more decimal places.) (e) Can we support the claim that the population mean number of miles driven is less than 13,480 miles? I |x X 0=0 0#0 X O S 050 0<0 Р <Q 020 Ś 0>0
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