Question

A town official claims that the average vehicle in their area Does Not sell for 80th percentile of your data set. Conduct a four-step hypothesis test including a sentence at the end justifying the support or lack of support for the claim and why you made that choice.

DATA:

$75,200

$52,995

$45,430

$39,440

$27,940

$37,780

$66,995

$45,840

$32,745

$46,690

Answer 1

The 80th percentile of the data set is $64,195.

The hypothesis being tested is:

H₀: µ = $64,195

H_a: µ ≠ $64,195

The output is:

64,195.000	hypothesized value
47,105.500	mean Data
14,694.768	std. dev.
4,646.894	std. error
10	n
9	df
-3.678	t
.0051	p-value (two-tailed)

The p-value from the output is 0.0051.

Since the p-value (0.0051) is less than the significance level (0.05), we can reject the null hypothesis.

Therefore, we can conclude that the average vehicle in their area Does Not sell for the 80th percentile of the data set.