Question

A used car dealer says that the mean price of a three-year-old sport utility vehicles (in good condition) is $20,000. You suspect that the claim is incorrect and find that a random sample of 22 similar vehicles has a mean price of $20,640 and a standard deviation of $1990. Is there enough evidence to reject the claim at α=0.05? (a) Write the claim mathematically. Identify H and H . (b) Determine whether the hypothesis test is one-tailed or two-tailed and whether to use a z-test, a t-test, or a -test. Explain your reasoning. (c) If necessary, find the critical value(s) and identify the rejection region(s). (d) Find the appropriate test statistic. If necessary, find the p-value. (e) Decide whether to reject or fail to reject the null hypothesis. (f) Interpret the decision in the context of the original claim.

Answer 1