Based on information from the Federal Highway Administration web site, the average annual miles driven per vehicle in the United States is 13.5 thousand miles. Assume σ ≈ 500 miles. Suppose that a random sample of 21 vehicles owned by residents of Chicago showed that the average mileage driven last year was 13.2 thousand miles. Would this indicate that the average miles driven per vehicle in Chicago is different from (higher or lower than) the national average? Use a 0.05 level of significance. What are we testing in this problem? (a) What is the level of significance? (b) What sampling distribution will you use? What assumptions are you making? What is the value of the sample test statistic? (c) Find (or estimate) the P-value. (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level ?? (e) Interpret your conclusion in the context of the application.
Based on information from the Federal Highway Administration web site, the average annual miles driven per vehicle in the United States is 13.5 thousand miles. Assume σ ≈ 500 miles. Suppose that a random sample of 21 vehicles owned by residents of Chicago showed that the average mileage driven last year was 13.2 thousand miles. Would this indicate that the average miles driven per vehicle in Chicago is different from (higher or lower than) the national average? Use a 0.05 level of significance.
What are we testing in this problem?
(a) What is the level of significance?
(b) What sampling distribution will you use? What assumptions are you making?
What is the value of the sample test statistic?
(c) Find (or estimate) the P-value.
(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level ??
(e) Interpret your conclusion in the context of the application.
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