A car dealership owner claims that the average price of the cars on his lot is less than $13500. You test this claim by sampling 24 cars which have an average price of $13317. Assume the population standard deviation is $1660 and the car prices are normally distributed. At a 0.01 level of significance, is there enough evidence to reject H0 and support the claim of the owner? No, because the p-value is 0.29460. No, because the p-value is 0.70540. Yes, because the p-value is 0.29460. Yes, because the p-value is 0.45620. No, because the p-value is 0.45620.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
A car dealership owner claims that the average price of the cars on his lot is less than $13500. You test this claim by sampling 24 cars which have an average price of $13317. Assume the population standard deviation is $1660 and the car prices are
At a 0.01 level of significance, is there enough evidence to reject H0 and support the claim of the owner?
- No, because the p-value is 0.29460.
- No, because the p-value is 0.70540.
- Yes, because the p-value is 0.29460.
- Yes, because the p-value is 0.45620.
- No, because the p-value is 0.45620.
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