14. A car dealer who sells only late-model luxury cars recently hired a new salesperson and believes that this salesperson is selling at lower markups. He knows that the long-run average markup in his lot is $5,600. He takes a random sample of 16 of the new salesperson's sales and finds an average markup of $5,000. The standard deviation of all markups is $800. Assume the markups are normally distributed. What is the conclusion of his test if the significance level is 10%? A) p-value = 0.00135; reject the null hypothesis B) p-value = 0.00135; fail to reject the null hypothesis C) p-value=0.10565; reject the null hypothesis D) p-value=0.10565; fail to reject the null hypothesis Show your work (you need to show all the steps of the hypothesis test).
14. A car dealer who sells only late-model luxury cars recently hired a new salesperson and believes that this salesperson is selling at lower markups. He knows that the long-run average markup in his lot is $5,600. He takes a random sample of 16 of the new salesperson's sales and finds an average markup of $5,000. The standard deviation of all markups is $800. Assume the markups are normally distributed. What is the conclusion of his test if the significance level is 10%? A) p-value = 0.00135; reject the null hypothesis B) p-value = 0.00135; fail to reject the null hypothesis C) p-value=0.10565; reject the null hypothesis D) p-value=0.10565; fail to reject the null hypothesis Show your work (you need to show all the steps of the hypothesis test).
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:14. A car dealer who sells only late-model luxury cars recently hired a new salesperson and
believes that this salesperson is selling at lower markups. He knows that the long-run average
markup in his lot is $5,600. He takes a random sample of 16 of the new salesperson's sales and
finds an average markup of $5,000. The standard deviation of all markups is $800. Assume the
markups are normally distributed. What is the conclusion of his test if the significance level is
10%?
A) p-value = 0.00135; reject the null hypothesis
B) p-value = 0.00135; fail to reject the null hypothesis
C) p-value=0.10565; reject the null hypothesis
D) p-value=0.10565; fail to reject the null hypothesis
Show your work (you need to show all the steps of the hypothesis test).
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