An automotive dealer advertised in Auto-Trend Magazine that the cost of a hybrid car was less than $10,000. Listed below is a total cost in $000 for a sample of 8 hybrid cars. At the .05 significance level, is it reasonable to conclude the mean cost of a hybrid car is less than $10,000? |
10.1 |
9.8 |
8.8 |
10.3 |
9.0 |
9.7 |
8.5 |
8.6 |
(A) |
State the null hypothesis and the alternate hypothesis. Use a .05 level of significance. (Enter your answers in thousands of dollars.) |
H_{0}: μ ≥ | ______ |
H_{1}: μ < | ______ |
(B) |
State the decision rule for .05 significance level. (Negative amount should be indicated by a minus sign.Round your answer to 3 decimal places.) |
Reject H_{0} if t < | ______________ |
(C) |
Compute the value of the test statistic. (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.) |
Value of the test statistic: | ___________ |
(D) |
At the .05 significance level is it reasonable to conclude the mean wedding cost is less than $10,000 as advertised? |
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