The report in LTO stated that the average age of taxis in the Philippines is 12 years. An operations manager of a large taxi company selects a sample of 40 taxis and finds the average age of the taxis is 11.2 years. The standard deviation of the population is 2.3 years. Is the report in LTO correct at 0.05 level of significance?

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The report in LTO stated that the average
age of taxis in the Philippines is 12 years.
An operations manager of a large taxi
company selects a sample of 40 taxis and
finds the average age of the taxis is 11.2
years. The standard deviation of the
population is 2.3 years.
Is the report in LTO correct at 0.05 level of
significance?
STEP 1:
Claim: The average age of taxis in the
Philippines is [a] 12 years.
Ho: The average age of taxis in the
Philippines is [b] to 12 years.
Ha: The average age of taxis in the
Philippines [c] to 12 years.
STEP 2:
Test statistic: [d]
Type of test: [e]
Critical value/s: [e]
α= = 0.05
Transcribed Image Text:The report in LTO stated that the average age of taxis in the Philippines is 12 years. An operations manager of a large taxi company selects a sample of 40 taxis and finds the average age of the taxis is 11.2 years. The standard deviation of the population is 2.3 years. Is the report in LTO correct at 0.05 level of significance? STEP 1: Claim: The average age of taxis in the Philippines is [a] 12 years. Ho: The average age of taxis in the Philippines is [b] to 12 years. Ha: The average age of taxis in the Philippines [c] to 12 years. STEP 2: Test statistic: [d] Type of test: [e] Critical value/s: [e] α= = 0.05
STEP 3:
What is the computed test value? [f]
STEP 4:
Decision: [g]
STEP 5:
Conclusion: [h] (Choose the letter of your
answer.)
A. There is no significant difference
between the sample mean and
population mean. Thus, it can be
concluded that the report of LTO is
correct.
B. There is a significant difference
between the sample mean and
population mean. Thus, it can be
concluded that the report of LTO is
incorrect.
C. There is a significant difference
between the sample mean and
population mean. Thus, it can be
Transcribed Image Text:STEP 3: What is the computed test value? [f] STEP 4: Decision: [g] STEP 5: Conclusion: [h] (Choose the letter of your answer.) A. There is no significant difference between the sample mean and population mean. Thus, it can be concluded that the report of LTO is correct. B. There is a significant difference between the sample mean and population mean. Thus, it can be concluded that the report of LTO is incorrect. C. There is a significant difference between the sample mean and population mean. Thus, it can be
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