An automobile manufacturer claims that their car has a 28.0 miles/gallon (MPG) rating. An independent testing firm has been contracted to test the MPG for this car.After testing 270 cars they found a mean MPG of 27.8. Assume the variance is known to be 6.25. Is there sufficient evidence at the 0.02 level that the cars have anincorrect manufacturer's MPG rating?Step 4 of 5: Enter the decision rule.

Step 1:Given data : Sample size n=270Sample mean xˉ=27.8population standard deviation…

Answered: An automobile manufacturer claims that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2) You work for the FTC. A manufacturer of detergent claims that the mean weight of detergent is at least 6.5 lb. You take a random sample of 64 containers. You calculate the sample average to be 6.43 lb. with a standard deviation of .14 lb. At the 0.02 level of significance, is the manufacturer correct?
P0 = R130; Ps = R 100; Pm = R200; Q1 = 1000; Q0 = 1200 a) Calculate supplier’s revenue before tax and after tax. b) Calculate the total tax revenue collected by the government. c) Calculate the total tax paid by the consumers and total tax paid by the suppliers. d)Compare the results inc above and give a logical explanation for the variance
The Philadelphia office of Price Waterhouse Coopers LLP hired five accounting trainees this year. Their monthly starting salaries were: $3,536; $3,173; $3,448; $3,121; and $3,622. (I) Compute the population mean. (II) Compute the population variance. (III) Compute the population standard deviation. (IV) The Pittsburgh office hired six trainees. Their mean monthly salary was $3,550, and the standard deviation was $250. Compare the two groups
A manufacturer claims that the calling range (in feet) of its 900-MHz cordless telephone is greater than that of its leading competitor. A sample of 1010 phones from the manufacturer had a mean range of 11801180 feet with a standard deviation of 4141 feet. A sample of 2020 similar phones from its competitor had a mean range of 11101110 feet with a standard deviation of 3535 feet. Do the results support the manufacturer's claim? Let μ1�1 be the true mean range of the manufacturer's cordless telephone and μ2�2 be the true mean range of the competitor's cordless telephone. Use a significance level of α=0.01�=0.01 for the test. Assume that the population variances are equal and that the two populations are normally distributed. Step 2 of 4 : Compute the value of the t test statistic. Round your answer to three decimal places.
The student academic group on a college campus claims that freshman students study at least 2.5 hours per day, on average. One Introduction to Statistics class was skeptical. The class took a random sample of 30 freshman students and found a mean study time of 139 minutes with a standard deviation of 44 minutes. At a = 0.01 level, is the student academic group's claim correct? Note: If you are using a Student's t-distribution for the problem, you may assume that the underlying population is normally distributed. (In general, you must first prove that assumption, though.) O Part (a) Part (b) Part (c) State alpha. (Enter an exact number as an integer, fraction, or decimal.) Part (d) Part (e) .. .... .... ..... . ...... ............................................................... ........................... Part (f)
The average expenditure on Valentine's Day was expected to be $100.89 (USA Today, February 13, 2006). Do male and female consumers differ in the amounts they spend? The average expenditure in a sample survey of 44 male consumers was $137.38, and the average expenditure in a sample survey of 35 female consumers was $65.11. Based on past surveys, the standard deviation for male consumers is assumed to be $35, and the standard deviation for female consumers is assumed to be $12. The z value is 2.576. Round your answers to decimal places. b. At 99% confidence, what is the margin of error? c. Develop a 99% confidence interval for the difference between the two population means.
You hope to rent an unfurnished one-bedroom apartment in Dallas next year. You call a friend who lives there and ask him to give you an estimate of the mean monthly rate. Having recently taken a statistics course, your geeky friend asks about the desired margin of error and confidence level for the estimate. He also tells you that the standard deviation of monthly rents for one-bedrooms is $360. Explain why in either case your geeky friend's sample may result in a bigger margin of error than desired. A bigger margin of error might result due to O rounding O a smaller guessed value for the population standard deviation sg O smaller confidence interval O a larger sample size
SCENARIO 3 Two samples each of size 25 are taken from independent populations assumed to be normally distributed with equal variances. The first sample has a mean of 35.5 and a standard deviation of 3.0 while the second sample has a mean of 33.0 and a standard deviation of 4.0. Referring to Scenario 3. the pooled (i.e., combined) variance is ________
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ou would like to get the highest paying job possible after graduating from UCR and are currently deciding vhether to enroll in ECON 108 in the fall term or not. You find a sample of recent UCR graduates that majc n Economics (there are no double majors in the samples). You sampled 100 Economics majors that took ECON 108 and you find that the average starting salary is 72K dollars, with a sample standard deviation of 10K dollars. You sampled 75 Economics majors that did not take ECON 108 and you find that the average starting salary is 65K dollars, with a sample standard deviation of 15K dollars. Which of the following statements is most correct? O I am not very confident in the results of my hypothesis test because the range in which I fail to reject the null hypothesis is relatively large. O I want to be very confident in the results of my hypothesis test, so the range in which I fail to reject the null hypothesis is relatively large. O The range in which I fail to reject is small, so…
Suppose a researcher is interested in a new treatment plan for increasing CD4 cell count in immune-compromised patients with HIV. In order to investigate the new drug, the researcher gathers a group of 48 individuals with a mean CD4 count of 317 cells/mm3 after treatment with a standard deviation of 24.6. Test the hypothesis that the mean CD4 count has increased above the goal of 275 cells/mm3. Write out your hypotheses and correctly interpret your pvalue. (Use an alpha level of 0.01)

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