Question

Professor wants to buy a new car, and of course it will be a sensible sedan, because, he is a professor. He is also concerned about how much carbon and air pollution he will produce from his car. He is considering two cars:

-A Honda Civic sedan. The car will cost $20,500 and it will get on average 30 miles to the gallon. Assume that the 5-year repair and maintenance costs will be $3200.

-A Toyota Prius sedan. The car has an MSRP of $28,000 and it will get on average of 50 miles to the gallon. The 5-year repair and maintenance costs are estimated at $3200. After 5-7 years, she has some risk of repairing the battery systems for about $5000.

Assume that Professor will drive the American average of 10,000 miles /year.

1. Calculate the amount of gas he will use for each car for a year, and assume gas is $3/gallon, calculate the difference in annual fuel costs.

2. Determine how many years he will need to own the Prius to make up the initial price difference. [Note that we are ignoring the added costs of financing, assume a stable gas price, and ignore the depreciation, effects of inflation, etc.]

3. Based on this analysis, why do you think consumers choose a Prius vs. a Civic?

4. Now, expand this analysis. Calculate the gallons of gasoline consumed per 10,000 miles for vehicles that range from 10 to 60 mpg. Plot the result in a graph (use a spreadsheet and graphing software like Excel) with gallons per 10,000 miles on the y-axis and mpg on the x-axis. Save your graph you will upload this later.

5. Describe the result. What trends do you see?

6. Based on this result, imagine that you are a manager of a company and want to make the fastest increase in fuel efficiency for a fleet of cars. The fleet consists of vehicles with a range of fuel efficiencies, and you will have a limited budget to make an impact. Over what range of mpg values will you make the biggest difference in reducing the cost of fuel?

Answer #1

A car salesperson claims that the mean gas mileage for its
luxury sedan is at least 25 miles per gallon (mpg). A random
sample of 30 cars has a mean gas mileage of 24 mpg and a (sample)
standard deviation of 3.5 mpg.
a) State the null and alternative
hypotheses.
b) Determine the P-Value
c) State the outcome of the test at α =
0.05

A car company says that the mean gas mileage for its luxury
sedan is at least 21 miles per gallon (mpg). You believe the claim
is incorrect and find that a random sample of 7 cars has a mean gas
mileage of 19 mpg and a standard deviation of 3 mpg. At alpha
equals 0.025, test the company's claim. Assume the population is
normally distributed. Which sampling distribution should be used
and why? State the appropriate hypothesis to test. What...

Your small remodeling business has two work vehicles. One is a
small passenger car used for job-site visits and for other general
business purposes. The other is a heavy truck used to haul
equipment. The car gets 25 miles per gallon (mpg). The truck gets
10 mpg. You want to improve gas mileage to save money, and you have
enough money to upgrade one vehicle. The upgrade cost will be the
same for both vehicles. An upgraded car will get...

Your small remodeling business has two work vehicles. One is a
small passenger car used for job-site visits and for other general
business purposes. The other is a heavy truck used to haul
equipment. The car gets 25 miles per gallon (mpg). The truck gets
10 mpg. You want to improve gas mileage to save money, and you have
enough money to upgrade one vehicle. The upgrade cost will be the
same for both vehicles. An upgraded car will get...

Suppose you buy a new car whose advertised mileage is 23 miles
per gallon (mpg). After driving your car for several months, you
find that its mileage is 18.5 mpg. You telephone the manufacturer
and learn that the standard deviation of gas mileages for all cars
of the model you bought is 1.24 mpg.
a. Find the z-score for the gas mileage of your car, assuming
the advertised claim is correct.
b. Does it appear that your car is getting...

Dylan Jones kept careful records of the fuel efficiency of his
new car. After the first twelve times he filled up the tank, he
found the mean was 26.1 miles per gallon (mpg) with a sample
standard deviation of 1.0 mpg.
Compute the 98% confidence interval for his mpg.
How many times should he fill his gas tank to obtain a margin of
error below 0.15 mpg?

A car company claims that the mean gas mileage for its luxury
sedan is at least 24 miles per gallon. A random sample of 7 cars
has a mean gas mileage of 23 miles per gallon and a standard
deviation of 2.4 miles per gallon. At α=0.05, can you support the
company’s claim assuming the population is normally distributed?
Yes, since the test statistic is not in the rejection region
defined by the critical value, the null is not rejected....

The manufacturer of a new compact car claims the miles per
gallon (mpg) for the gasoline consumption is mound-shaped and
symmetric with a mean of 27.4 mpg and a standard deviation of 10.2
mpg. If 29 such cars are tested, what is the probability the
average mpg achieved by these 29 cars will be greater than 29?
Answer: Round your answer to 4 decimal places as necessary. For
example, 0.1357 would be a legitimate entry. Make sure you include
the...

Are you thinking of bypassing a gasoline-fueled car in favor of
a hybrid (gasoline and electric) automobile? Let's take a look
at the relative economics of your possible choice. Let's say the
gasoline-fueled car sells for $21,000 and gets 2525 miles per
gallon (mpg) of fuel, while the competing hybrid car sells for
24,000 and averages 31.931.9mpg. The expected resale value of the
hybrid car is $8,400 and that of the gasoline-only car is
$6,900after five years of anticipated ownership....

Dylan Jones kept careful records of the fuel efficiency of his
new car. After the first ten times he filled up the tank, he found
the mean was 25.3 miles per gallon (mpg) with a sample standard
deviation of 0.8 mpg.
1) Compute the 90% confidence interval for his mpg.
(Round your answers to 3 decimal places.)
The confidence interval is between ___ and ___.
2) How many times should he fill his gas tank to obtain a margin
of...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 3 minutes ago

asked 3 minutes ago

asked 15 minutes ago

asked 16 minutes ago

asked 17 minutes ago

asked 33 minutes ago

asked 36 minutes ago

asked 38 minutes ago

asked 46 minutes ago

asked 48 minutes ago

asked 49 minutes ago

asked 52 minutes ago