Homework Help is Here – Start Your Trial Now!
Math
Statistics
Suppose that you wanted to buy a new Honda Civic and you want to wait until you can get a good deal. You want to see if the usual/average price of a Honda Civic is below the blue book value of $21,550. You are unsure that the prices of the current listings around you are lower than the blue book value of a Honda Civic so you randomly sample 49 listings from the area and find their sample mean selling price is $20,015 and their sample standard deviation is $1750.

Suppose that you wanted to buy a new Honda Civic and you want to wait until you can get a good deal. You want to see if the usual/average price of a Honda Civic is below the blue book value of $21,550. You are unsure that the prices of the current listings around you are lower than the blue book value of a Honda Civic so you randomly sample 49 listings from the area and find their sample mean selling price is $20,015 and their sample standard deviation is $1750.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question
**Evaluating Car Purchase: A Case Study** Suppose you are interested in purchasing a new Honda Civic and want to ensure you get a good deal. To make an informed decision, you need to determine if the current average price of a Honda Civic in your area is below the blue book value, which is $21,550. You are uncertain whether the local listings reflect lower prices than the blue book value. To investigate, you randomly sample 49 car listings from the area. From this sample, you find that the average selling price is $20,015, with a sample standard deviation of $1,750. - **Blue book value:** $21,550 - **Sample size:** 49 - **Sample mean price:** $20,015 - **Sample standard deviation:** $1,750 This data will help you perform statistical analysis to determine if the current prices are indeed lower than the blue book value, which will guide you in making a well-informed car purchasing decision.
Transcribed Image Text:**Evaluating Car Purchase: A Case Study** Suppose you are interested in purchasing a new Honda Civic and want to ensure you get a good deal. To make an informed decision, you need to determine if the current average price of a Honda Civic in your area is below the blue book value, which is $21,550. You are uncertain whether the local listings reflect lower prices than the blue book value. To investigate, you randomly sample 49 car listings from the area. From this sample, you find that the average selling price is $20,015, with a sample standard deviation of $1,750. - **Blue book value:** $21,550 - **Sample size:** 49 - **Sample mean price:** $20,015 - **Sample standard deviation:** $1,750 This data will help you perform statistical analysis to determine if the current prices are indeed lower than the blue book value, which will guide you in making a well-informed car purchasing decision.
### Determining the Appropriate Null and Alternative Hypotheses **Question**: What is the null and alternative hypothesis that will address your goal? **Answer Choices**: 1. \( H_0 : \mu \geq 21550 \) vs. \( H_a : \mu < 21550 \) 2. \( H_0 : \mu \geq 20015 \) vs. \( H_a : \mu < 20015 \) 3. \( H_0 : \mu = 21550 \) vs. \( H_a : \mu \neq 21550 \) 4. \( H_0 : \bar{X} \geq 21550 \) vs. \( H_a : \bar{X} < 21550 \) ### Explanation: In hypothesis testing, the null hypothesis (denoted as \( H_0 \)) is a statement that there is no effect or no difference, and it is the hypothesis that researchers aim to test against. The alternative hypothesis (denoted as \( H_a \) or \( H_1 \)) is what researchers want to prove. Each answer choice involves different parameters: - **Choice 1** and **Choice 2**: These choices frame the hypotheses in terms of the population mean (\( \mu \)). - **Choice 3**: This choice considers the possibility that the population mean is equal to or not equal to a specific value. - **Choice 4**: This choice uses the sample mean (\( \bar{X} \)) instead of the population mean (\( \mu \)). Students should select the hypothesis pair that aligns with their specific research goals and questions. For example, if the goal is to determine if the population mean is less than a specific value ($21,550), then Choice 1 might be appropriate. **Note**: In choosing hypotheses, ensure to match the variable of interest and the direction of the conjecture (greater than, less than, or not equal).
Transcribed Image Text:### Determining the Appropriate Null and Alternative Hypotheses **Question**: What is the null and alternative hypothesis that will address your goal? **Answer Choices**: 1. \( H_0 : \mu \geq 21550 \) vs. \( H_a : \mu < 21550 \) 2. \( H_0 : \mu \geq 20015 \) vs. \( H_a : \mu < 20015 \) 3. \( H_0 : \mu = 21550 \) vs. \( H_a : \mu \neq 21550 \) 4. \( H_0 : \bar{X} \geq 21550 \) vs. \( H_a : \bar{X} < 21550 \) ### Explanation: In hypothesis testing, the null hypothesis (denoted as \( H_0 \)) is a statement that there is no effect or no difference, and it is the hypothesis that researchers aim to test against. The alternative hypothesis (denoted as \( H_a \) or \( H_1 \)) is what researchers want to prove. Each answer choice involves different parameters: - **Choice 1** and **Choice 2**: These choices frame the hypotheses in terms of the population mean (\( \mu \)). - **Choice 3**: This choice considers the possibility that the population mean is equal to or not equal to a specific value. - **Choice 4**: This choice uses the sample mean (\( \bar{X} \)) instead of the population mean (\( \mu \)). Students should select the hypothesis pair that aligns with their specific research goals and questions. For example, if the goal is to determine if the population mean is less than a specific value ($21,550), then Choice 1 might be appropriate. **Note**: In choosing hypotheses, ensure to match the variable of interest and the direction of the conjecture (greater than, less than, or not equal).
Expert Solution
steps

Step by step

Solved in 4 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS