According to a leasing firm's reports, the mean number of miles driven annually in its leased cars is 12,360 miles with a standard deviation of 1260 miles. The company recently starting using new contracts which require customers to have the cars serviced at their own expense. The company's owne believes the mean number of miles driven annually under the new contracts, H, is less than 12,360 miles. He takes a random sample of 20 cars under the new contracts. The cars in the sample had a mean of 11,718 annual miles driven. Assume that the population is normally distributed. Is there support for the claim, at the 0.10 level of significance, that the population mean number of miles driver annually by cars under the new contracts, is less than 12,360 miles? Assume that the population standard deviation of miles driven annually was not affected by the change to the contracts. Perform a one-tailed test. Then answer the questions below. Carry your intermediate computations to three or more decimal places, and round your responses as specified below. (a) State the null hypothesis H, and the alternative hypothesis H,. Ho: H1: (b) Determine the type of test statistic to use. •t • Chi-Square • F Degrees of freedom (if applicable): (c) Find the value of the test statistic. (Round to three or more decimal places.) (d) Find the critical value. (Round to three or more decimal places.) (e) Can we support the claim that the population mean number of miles driven annually by cars under the new contracts is less than 12,360 miles? • Yes • No
According to a leasing firm's reports, the
Carry your intermediate computations to three or more decimal places, and round your responses as
specified below.
(a) State the null hypothesis and the alternative hypothesis .
H0:
H1:
(b) Determine the type of test statistic to use.
Zt
Chi-Square
F
Degrees of freedom (if applicable):
(c) Find the value of the test statistic. (Round to three or more decimal places.)
(d) Find the critical value. (Round to three or more decimal places.)
(e) Can we support the claim that the population mean number of miles driven annually by cars under
the new contracts is less than miles?
Yes
No

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