An automobile company is looking for fueladditives that might increase gas mileage. Without additives, theircars are known to average 18 mpg (miles pergallons) with a standard deviation of 3 mpg on a road trip from Muscat to Sur. The company now asks whethera new additive increases this value. In a study, forty cars are sent on a road trip from Muscat to Sur. Şuppose it turns out that the forty cars averaged = (18.75) mpg with the additive. Can we conclude from this result that the additive is effective? a. With a significance level of 5%. b. With a significance level of 1%.

A First Course in Probability (10th Edition)
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Author:Sheldon Ross
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Chapter1: Combinatorial Analysis
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Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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An automobile company is looking for fueladditives that might increase gas mileage. Without additives,
theircars are known to average 18 mpg (miles pergallons) with a standard deviation of 3 mpg on a road
trip from Muscat to Sur. The company now asks whethera new additive increases this value. In a study,
forty cars are sent on a road trip from Muscat to Sur. Şuppose it turns out that the forty cars
averaged = (18.75) mpg with the additive. Can we conclude from this result that the additive is
effective?
a. With a significance level of 5%.
b. With a significance level of 1%.
Transcribed Image Text:An automobile company is looking for fueladditives that might increase gas mileage. Without additives, theircars are known to average 18 mpg (miles pergallons) with a standard deviation of 3 mpg on a road trip from Muscat to Sur. The company now asks whethera new additive increases this value. In a study, forty cars are sent on a road trip from Muscat to Sur. Şuppose it turns out that the forty cars averaged = (18.75) mpg with the additive. Can we conclude from this result that the additive is effective? a. With a significance level of 5%. b. With a significance level of 1%.
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