he manufacturer of the X-15 steel-belted redial truck tire claims that the mean mileage the tire can be driven before the tread wears out is at least 60,000 miles. Crosset Truck Company bought a sample of 48 tires and found that the mean mileage for its trucks is 59,000 miles (i.e. less than the manufacturer’s claim) with a standard deviation of 5,000 miles. 1)  Test the manufacturer’s claim at a significance level (α) equals 5%. 2)  Would your answer in part (1) change if the probability of type I error equals zero? Justify your answer. |Page1 3)  Would your answer in (1) change if the confidence level changes to be 99%. Justify your answer with proper test.

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The manufacturer of the X-15 steel-belted redial truck tire claims that the mean mileage the tire can be driven before the tread wears out is at least 60,000 miles. Crosset Truck Company bought a sample of 48 tires and found that the mean mileage for its trucks is 59,000 miles (i.e. less than the manufacturer’s claim) with a standard deviation of 5,000 miles.

  1. 1)  Test the manufacturer’s claim at a significance level (α) equals 5%.

  2. 2)  Would your answer in part (1) change if the probability of type I error

    equals zero? Justify your answer.

|Page1

  1. 3)  Would your answer in (1) change if the confidence level changes to be 99%. Justify your answer with proper test.

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