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vekshin1
3 years ago
8

An automobile manufacturer claims that its car has a 28.0 miles/gallon (MPG) rating. An independent testing firm has been contra

cted to test the MPG for this car since it is believed that the car has an incorrect manufacturer's MPG rating. After testing 270 cars, they found a mean MPG of 27.8. Assume the variance is known to be 6.25. A level of significance of 0.02 will be used. Make a decision to reject or fail to reject the null hypothesis. Make a decision.
Mathematics
1 answer:
d1i1m1o1n [39]3 years ago
8 0

Answer:

<em>The calculated value z = 1.3145 < 2.326 at  0.02 level of significance</em>

<em>The null hypothesis is accepted </em>

<em>Hence An automobile manufacturer claims that its car has a 28.0 miles/gallon (MPG) rating.</em>

Step-by-step explanation:

<em><u>Step(i)</u></em>:-

An automobile manufacturer claims that its car has a 28.0 miles/gallon (MPG) rating.

<em>The mean of the Population 'μ' = 28.0miles/gallon</em>

Given data after testing 270 cars, they found a mean MPG of 27.8. Assume the variance is known to be 6.25.

<em>The sample size 'n' = 270 </em>

<em>Mean of the sample 'x⁻' = 27.8</em>

<em>Given Population variance 'σ² = 6.25</em>

<em>The standard deviation of Population 'σ' = √6.25 = 2.5</em>

<u><em>Step(ii):-</em></u>

<em>Null hypothesis :H₀: 'μ' = 28.</em>

<em>Alternative hypothesis :H₁: 'μ' ≠28.</em>

<em>The test statistic </em>

<em></em>Z = \frac{x^{-}-mean }{\frac{S.D}{\sqrt{n} } }<em></em>

<em></em>Z = \frac{27.8-28 }{\frac{2.5}{\sqrt{270} } } = \frac{-0.2}{0.15214}<em></em>

<em>Z = -1.3145</em>

|Z| = |<em>-1.3145|= 1.3145</em>

<u><em>Step(iii)</em></u><em>:-</em>

<em>The tabulated value  of z-score at 0.02 level of significance = 2.326</em>

The calculated value z = 1.3145 < 2.326 at a t 0.02 level of significance

<em>The null hypothesis is accepted </em>

<em>Hence An automobile manufacturer claims that its car has a 28.0 miles/gallon (MPG) rating.</em>

<em></em>

<em></em>

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Step-by-step explanation:

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The amount of gross profit earned by Abbey Co. on the above transactions is $7,554.00

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The implication of such goods returned is that $2,500 would be deducted from selling price and $1,800 would be deducted from cost of goods sold.

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