Question

A city officials claim that average transit usage in the city is less than 20%. Based...

A city officials claim that average transit usage in the city is less than 20%. Based on previous studies in different parts of the city, it is known that the share of transit is normally distributed in the city with a standard deviation of 3.5. A research group collected data for different parts of the city and ended up with 12 observations for transit usage in different parts of the city: 20, 18, 19, 16, 18, 26, 22, 19, 24, 16, 14, 17

a. Carry out an appropriate hypothesis test to examine the validity of the city officials.

b. Evaluate the claim if the assumption about the standard deviation of 3.5 is not considered.

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