A consumer advocacy group is doing a large study on car rental practices. Among other ungs, the mean monthly mileage, µ, of cars rented in the U.S. this year. The consumer group has good reason to believe that the mean monthly mileage of cars rented in the U.S. this year is less than last year's mean, which was 2850 miles. The group plans to do a statistical test regarding the value of u. It chooses a random sample of monthly mileages and computes the mean of the sample to be 2715 miles and the standard deviation to be 750 miles. Based on this information, complete the parts below. (a) What are the null hypothesis H and the alternative hypothesis H, that should be used for the test? H :0 OSO H, 0 (b) Suppose that the group decides not to reject the null hypothesis. What sort of error might it be making? (Choose one) ▼ (c) Suppose the true mean monthly mileage of cars rented in the U.S. this year is 2700. Fill in the blanks to describe a Type II error.

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### Statistical Analysis of Car Rental Mileage

A consumer advocacy group is conducting a large study on car rental practices. They aim to perform a statistical test on the mean monthly mileage (\(\mu\)) of cars rented in the U.S. this year. The consumer group suspects that the mean monthly mileage this year is less than last year's mean of 2850 miles.

They plan to perform the test by selecting a random sample of monthly mileages. The mean of this sample is calculated to be 2715 miles, with a standard deviation of 750 miles.

**Based on this information, complete the following:**

#### (a) Hypotheses Formulation

1. **Null Hypothesis (\(H_0\)):**
   - The mean monthly mileage of cars rented this year is equal to last year’s mean.

2. **Alternative Hypothesis (\(H_1\)):**
   - The mean monthly mileage of cars rented this year is less than last year’s mean.

#### (b) Type I Error

- If the group decides not to reject the null hypothesis, they risk a Type I error. A Type I error occurs when a true null hypothesis is incorrectly rejected.

#### (c) Type II Error

- Suppose the true mean monthly mileage of cars rented this year is 2700 miles. Fill in the blanks to describe a Type II error:
  - A Type II error would be failing to reject the hypothesis that \(\mu\) is less than 2850 when, in fact, \(\mu\) is 2700. 

This exercise provides a clear understanding of hypothesis testing, potential errors, and the importance of statistical analysis in real-world applications.
Transcribed Image Text:### Statistical Analysis of Car Rental Mileage A consumer advocacy group is conducting a large study on car rental practices. They aim to perform a statistical test on the mean monthly mileage (\(\mu\)) of cars rented in the U.S. this year. The consumer group suspects that the mean monthly mileage this year is less than last year's mean of 2850 miles. They plan to perform the test by selecting a random sample of monthly mileages. The mean of this sample is calculated to be 2715 miles, with a standard deviation of 750 miles. **Based on this information, complete the following:** #### (a) Hypotheses Formulation 1. **Null Hypothesis (\(H_0\)):** - The mean monthly mileage of cars rented this year is equal to last year’s mean. 2. **Alternative Hypothesis (\(H_1\)):** - The mean monthly mileage of cars rented this year is less than last year’s mean. #### (b) Type I Error - If the group decides not to reject the null hypothesis, they risk a Type I error. A Type I error occurs when a true null hypothesis is incorrectly rejected. #### (c) Type II Error - Suppose the true mean monthly mileage of cars rented this year is 2700 miles. Fill in the blanks to describe a Type II error: - A Type II error would be failing to reject the hypothesis that \(\mu\) is less than 2850 when, in fact, \(\mu\) is 2700. This exercise provides a clear understanding of hypothesis testing, potential errors, and the importance of statistical analysis in real-world applications.
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