1. According to the records of an auto insurance company, the average distance that their customers drive to work is 17.4 miles. You are a new agent, and you think this is too low. You do a random polling of 50 of the company's customers, and you find that the average is 18.5 miles with a standard deviation of 3.4 miles. Do these data provide enough evidence at the 0.05 level of significance to conclude that the average distance driven to work is actually more than 17.4 miles? A. State the null and alternative hypotheses B. State the p-value. C. What is your conclusion about the null hypothesis? D. What is your conclusion in context of this problem?

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1. According to the records of an auto insurance company, the average distance that their
customers drive to work is 17.4 miles. You are a new agent, and you think this is too low. You do
a random polling of 50 of the company's customers, and you find that the average is 18.5 miles
with a standard deviation of 3.4 miles. Do these data provide enough evidence at the 0.05 level
of significance to conclude that the average distance driven to work is actually more than 17.4
miles?
A. State the null and alternative hypotheses
B. State the p-value.
C. What is your conclusion about the null hypothesis?
D. What is your conclusion in context of this problem?
Transcribed Image Text:1. According to the records of an auto insurance company, the average distance that their customers drive to work is 17.4 miles. You are a new agent, and you think this is too low. You do a random polling of 50 of the company's customers, and you find that the average is 18.5 miles with a standard deviation of 3.4 miles. Do these data provide enough evidence at the 0.05 level of significance to conclude that the average distance driven to work is actually more than 17.4 miles? A. State the null and alternative hypotheses B. State the p-value. C. What is your conclusion about the null hypothesis? D. What is your conclusion in context of this problem?
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Denote μ as the true average distance that customers of the auto insurance company drive to work.

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