Question

1. The national population mean of used cars sold for $10, 500 during last year. The population standard deviation of these sales is $740. We want to determine if the sales prices for Mike’s car dealership of Washington were the same as the national population. We take a sample of 100 car sales from Mike’s lot and determined the sample mean to be $11,200.

Set up the appropriate hypothesis test to determine if Mike's lot sale prices are the same as the national average. Use an alpha = 0.10 for a two-tailed test. Would you use a Z or a T test? Do not answer this here. Determine this itype of test and n the problem set-up.

                Set up the four steps below.

1. State the two Hypotheses properly.

2. Determine the critical rejection value based upon alpha, the tails, and the type of test Z or T?

3. Calculate the test value

4. State Conclusion.

Answer 1