A used car dealer says that the mean price of a three-year-old sports utility vehicle is$20,000.You suspect this claim is incorrect and find that a random sample of20similar vehicles has a mean price of$20,752and a standard deviation of$1920.Is there enough evidence to reject the claim atα=0.05? Assume the population is normally distributed. 1.Find the standardized test statistic t.2. Decide whether to reject or fail to reject the null hypothesis.3. Interpret the decision in the context of the original claim. (c) Find the standardized test statistic t.t =(Round to two decimal places as needed.)(d) Decide whether to reject or fail to reject the null hypothesis.A. Reject Ho because the test statistic is in the rejection region(s).B. Fail to reject Ho because the test statistic is not in the rejection region(s).O C. Fail to reject Ho because the test statistic is in the rejection region(s).D. Reject Ho because the test statistic is not in the rejection region(s).(e) Interpret the decision in the context of the original claim.A. At the 5% level of significance, there is not sufficient evidence to reject the claim that the mean price is $20,000.B. At the 5% level of significance, there is not sufficient evidence to reject the claim that the mean price is not $20,000.C. At the 5% level of significance, there is sufficient evidence to reject the claim that the mean price is not $20,000.D. At the 5% level of significance, there is sufficient evidence to reject the claim that the mean price is $20,000.

Givensample size(n)=20Mean(x)=20752standard deviation(s)=1920α=0.05

Answered: A used car dealer says that the mean…

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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Question

A used car dealer says that the mean price of a three-year-old sports utility vehicle is

$20,000.

You suspect this claim is incorrect and find that a random sample of

similar vehicles has a mean price of

$20,752

and a standard deviation of

$1920.

Is there enough evidence to reject the claim at

α=0.05?

Assume the population is normally distributed.

1.Find the standardized test statistic t.

2. Decide whether to reject or fail to reject the null hypothesis.

3. Interpret the decision in the context of the original claim.

(c) Find the standardized test statistic t.
t =
(Round to two decimal places as needed.)
(d) Decide whether to reject or fail to reject the null hypothesis.
A. Reject Ho because the test statistic is in the rejection region(s).
B. Fail to reject Ho because the test statistic is not in the rejection region(s).
O C. Fail to reject Ho because the test statistic is in the rejection region(s).
D. Reject Ho because the test statistic is not in the rejection region(s).
(e) Interpret the decision in the context of the original claim.
A. At the 5% level of significance, there is not sufficient evidence to reject the claim that the mean price is $20,000.
B. At the 5% level of significance, there is not sufficient evidence to reject the claim that the mean price is not $20,000.
C. At the 5% level of significance, there is sufficient evidence to reject the claim that the mean price is not $20,000.
D. At the 5% level of significance, there is sufficient evidence to reject the claim that the mean price is $20,000.

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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