According to recent information from the Speedo Automobile Association, the mean age of passenger cars in USA is 8.4 years. A sample of 36 cars in the student’s lot at College X showed the mean age to be 9.0 years. The standard deviation of this sample was 2.8 years. At the 0.01 significance level can we conclude that the mean age for these cars of College X students is more than 8.4 years? Let the critical value of this test statistic be 2.575 (Z-table value). a) State the null hypothesis and the alternative hypothesis for this test. b) Compute the value of the test statistic.  c) What is your decision regarding the null hypothesis? Interpret your decision.

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According to recent information from the Speedo Automobile Association, the mean age of passenger cars in USA is 8.4 years. A sample of 36 cars in the student’s lot at College X showed the mean age to be 9.0 years. The standard deviation of this sample was 2.8 years. At the 0.01 significance level can we conclude that the mean age for these cars of College X students is more than 8.4 years? Let the critical value of this test statistic be 2.575 (Z-table value).

a) State the null hypothesis and the alternative hypothesis for this test.

b) Compute the value of the test statistic. 

c) What is your decision regarding the null hypothesis? Interpret your decision. 

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