1. The owner of a gas station which makes headlight inspections for the state is trying to decide whether or not to discontinue the service. He figures that to make the operation profitable, the station must average in excess of 15 inspections per week. Unless data indicates strongly that this is the case, inspections will be discontinued. Data for the past year (52 weeks) yields a sample average of 16.7 inspections per week with a sample standard deviation of 4.5. Is this strong enough evidence to cause the owner to retain the inspection service? Test the relevant hypotheses using the P-value method.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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**Problem 1:**

The owner of a gas station that conducts headlight inspections for the state is evaluating whether to continue offering the service. For the service to be profitable, the station needs to average more than 15 inspections per week. If the data does not strongly support this, the inspections will be discontinued. Over the past year (52 weeks), the data shows a sample average of 16.7 inspections per week with a sample standard deviation of 4.5. 

The question is whether this evidence is sufficient for the owner to justify retaining the inspection service. To determine this, the relevant hypotheses should be tested using the P-value method.
Transcribed Image Text:**Problem 1:** The owner of a gas station that conducts headlight inspections for the state is evaluating whether to continue offering the service. For the service to be profitable, the station needs to average more than 15 inspections per week. If the data does not strongly support this, the inspections will be discontinued. Over the past year (52 weeks), the data shows a sample average of 16.7 inspections per week with a sample standard deviation of 4.5. The question is whether this evidence is sufficient for the owner to justify retaining the inspection service. To determine this, the relevant hypotheses should be tested using the P-value method.
Expert Solution
Step 1

Given data :

sample size, n = 52

sample mean, x̄ = 16.7

sample standard deviation,s= 4.5

population mean,μ= 15.0

Significance level, α= 0.05

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