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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 an incorrect manufacturer's MPG rating? Step 4 of 5: Enter the decision rule.

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 an incorrect manufacturer's MPG rating? Step 4 of 5: Enter the decision rule.

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter19: Externalities And Public Goods
Section: Chapter Questions
Problem 19.12P
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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 an incorrect manufacturer's MPG rating? Step 4 of 5: Enter the decision rule.
Transcribed Image Text: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 an incorrect manufacturer's MPG rating? Step 4 of 5: Enter the decision rule.
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