Concept explainers
The U.S. Department of Transportation requires tire manufactures to provide performance on tire sidewalls to help prospective buyers make their purchasing decisions. One very important place of information is the tread wear index, which indicates the tire’s resistance of tread wear. A tire with a grade of 200 should last twice as long, on average, as a tire with a grade of 100.
A consumer organization wants to test the actual tread wear index of a brand name of tires that claims “graded 200� on the sidewall of the tire. A random sample of
a. Is three evidence that the population mean tread wear index is different from 200? (Use a 0.05 level of significance.)
b. Determine the p-value and interpret its meaning.
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Basic Business Statistics
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