Question

Data: An automotive shop believes annual cost of automotive maintenance is over $3500. A random sample of 8 cars has a sample mean of $3625 and a sample standard deviation of $225. At a 0.05 level of significance, do you have enough evidence to support the shop’s claim?

Determine the type of test:

Determine the rejection region:

Find the standardized test statistic

Decide whether to reject or fail to reject the null hypothesis and interpret the decision.

(a) Fail to Reject Ho: Not enough evidence to reject claim.

(b) Reject Ho: Not enough evidence to support claim

(c) Reject Ho: Enough evidence to support claim

(d) Reject Ho. Enough evidence to reject claim.

(e) Fail to Reject Ho: Not enough evidence to support claim

Answer #1

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parts (a) through (e) below. (a) Identify the claim and state H0
and HA (b) Find the critical value(s) and identify the rejection
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√??/?
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Exercises 7–12, (a) identify the claim and state H0 and Ha, (b)
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50,760 40,978 52,376 46,496 41,734 40,201 51,108
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