Question

Please solve this question with very step and explanation.

Q) The manager of a car rental firm claims that the average kilometers traveled per day by each of its cars rented in Ankara differs from 70km. To justify this claim they collected a random sample of 25 cars. The sample yields an average of 85.5kms per day and the population standard deviation is known as 19.3kms per day. It is assumed that the kilometers traveled is normally distributed. Take the significance level as 0.05.

a)State the null and alternative hypotheses.

b) Calculate the test statistic.

c) Determine the critical value(s).

d) Make a decision as “Reject H0” or “Do not reject H0”. Explain your decision.

e) (20 pts) Interpret your result.

Answer 1