Question

# An automotive dealer advertised in Auto-Trend Magazine that the cost of a hybrid car was less...

 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 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.)
 H0: μ ≥ ______ H1: 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 H0 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?