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 20 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.

MATLAB: An Introduction with Applications
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Chapter1: Starting With Matlab
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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

20

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.
Transcribed Image Text:(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.
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