A newsletter publisher believes that 71q% of their readers own a personal computer. Is there sufficient evidence at the 0.010.01
1 answer:
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Answer:
No, we can't reject the dealer's claim with a significance level of 0.05.
Step-by-step explanation:
We are given that a local car dealer claims that 25% of all cars in San Francisco are blue.
You take a random sample of 600 cars in San Francisco and find that 141 are blue.
<u><em>Let p = proportion of all cars in San Francisco who are blue</em></u>
SO, Null Hypothesis, : p = 25% {means that 25% of all cars in San Francisco are blue}
Alternate Hypothesis, : p
25% {means that % of all cars in San Francisco who are blue is different from 25%}
The test statistics that will be used here is <u>One-sample z proportion</u> <u>statistics</u>;
T.S. = ~ N(0,1)
where, = sample proportion of 600 cars in San Francisco who are blue =
= 0.235
n = sample of cars = 600
So, <u><em>test statistics</em></u> =
= -0.866
<em>Now at 0.05 significance level, the z table gives critical values of -1.96 and 1.96 for two-tailed test. Since our test statistics lies within the range of critical values of z so we have insufficient evidence to reject our null hypothesis as it will not fall in the rejection region due to which we fail to reject our null hypothesis.</em>
Therefore, we conclude that 25% of all cars in San Francisco are blue which means the dealer's claim was correct.
This question can be approached using the present value of annuity formula. The present value of annuity is given by 
, where: PV is the present value/amount of the loan, P is the periodic (monthly in this case) payment, r is the APR, t is the number of payments in one year and n is the number of years.
Given that the<span> financing is for a new road bike of $2,500 and that the bike shop offers a 13.5% APR for a 24 month loan.
Thus, PV = $2,500; r = 13.5% = 0.135; t = 12 payments (since payment is made monthly); n = 2 years (i.e. 24 months)
Thus,
</span>
<span>
Therefore, his monthly payment is $119.44</span>
Given that the<span> financing is for a new road bike of $2,500 and that the bike shop offers a 13.5% APR for a 24 month loan.
Thus, PV = $2,500; r = 13.5% = 0.135; t = 12 payments (since payment is made monthly); n = 2 years (i.e. 24 months)
Thus,
</span>
<span>
Therefore, his monthly payment is $119.44</span>