Answer:
The claim made by Carter Motor Company is correct.
Step-by-step explanation:
The claim made by the Carter Motor Company about their new sedan, the Libra, is that, it will average better than 24 miles per gallon in the city.
The hypothesis to test this claim can be defined as follows:
<em>H₀</em>: The new sedan will average 24 miles per gallon in the city, i.e. <em>μ</em> = 24.
<em>Hₐ</em>: The new sedan will average better than 24 miles per gallon in the city, i.e. <em>μ</em> > 24.
The test can be performed using a <em>z</em>-distribution or the <em>t</em>-distribution based on the information provided.
It is provided that the conclusion made is to reject the null hypothesis.
The null hypothesis will be rejected when the <em>p</em>-value of the test is less than the significance level or the test statistic value is larger than the critical value.
If the null hypothesis is rejected then it will imply that the new sedan, Libra will average better than 24 miles per gallon in the city.
Thus, concluding that the claim made by Carter Motor Company is correct.
