A tire store advertises that the average price of a new set of their tires is only $150. One of their recent customers believes their advertised average is too low – that the true mean price for a set of tires exceeds $150. He plans to carry out a hypothesis test at α = 0.05. In order to perform the test, the customer took an SRS of 8 sets of tires recently sold. The mean of these sets of tires was x̅ = $156.90 and the standard deviation was s = $11.80. a)What are the appropriate null and alternative hypotheses for this test? H0: x̅ = 150 vs. Ha: x̅ < 150 H0: μ = 150 vs. Ha: μ > 150 H0: x̅ = 150 vs. Ha: x̅ > 150 H0: μ = 150 vs. Ha: μ < 150 b)Are the conditions of randomness and normality met for this test? How? c)What are the appropriate degrees of freedom for this test?
A tire store advertises that the average price of a new set of their tires is only $150. One of their recent customers believes their advertised average is too low – that the true mean price for a set of tires exceeds $150. He plans to carry out a hypothesis test at α = 0.05. In order to perform the test, the customer took an SRS of 8 sets of tires recently sold. The mean of these sets of tires was x̅ = $156.90 and the standard deviation was s = $11.80.
a)What are the appropriate null and alternative hypotheses for this test?
H0: x̅ = 150 vs. Ha: x̅ < 150
H0: μ = 150 vs. Ha: μ > 150
H0: x̅ = 150 vs. Ha: x̅ > 150
H0: μ = 150 vs. Ha: μ < 150
b)Are the conditions of randomness and normality met for this test? How?
c)What are the appropriate degrees of freedom for this test?
d)What is the value of the t test statistic for this test?
e)Suppose the value for the t test statistic is t = 1.79. What is the p-value for a one-sided test?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
