Question

The following 5 questions are based on this information.

Historically, the average number of cars owned in a lifetime has been 12. Because of recent economic downturns, an economist believes that the number is now lower. A recent survey of 27 senior citizens indicates that the average number of cars owned over their lifetime is 9.

Assume that the random variable, number of cars owned in a lifetime (denoted by X), is normally distributed with a standard deviation (σ) is 4.5.

1) Specify the null and alternative hypotheses.

Select one:

a. H(0): μ≤12μ≤12   versus H(a): μ>12μ>12

b. H(0):   μ≥12μ≥12   versus H(a): μ<12

2) The standard error (SE) of Xbar is

Select one:

a. 0.9

b. 4.5

c. 10.5

d. 2.5

3) The test statistics value is

Select one:

a. 0.9

b. -2.5

c. -3.46

d. 2.5

4) The p-value is

Select one:

a. 0.99

b. 0.05

c. 0.03

d. 0.00

5) At α=0.10 and using the p-value

Select one:

a. We do not reject H(0)

b. We reject H(0) in favor of H(a)

Answer 1