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
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