<em>Answer:</em>
–6.8
<em>Method:</em>
Counting backwards from –7 to –6.5
Answer: There is sufficient evidence to reject the dealer's claim that the mean price is at least $20,500
Step-by-step explanation:
given that;
n = 14
mean Ж = 19,850
standard deviation S = 1,084
degree of freedom df = n - 1 = ( 14 -1 ) = 13
H₀ : ц ≥ 20,500
H₁ : ц < 20,500
Now the test statistics
t = (Ж - ц) / ( s/√n)
t = ( 19850 - 20500) / ( 1084/√14)
t = -2.244
we know that our degree of freedom df = 13
from the table, the area under the t-distribution of the left of (t=-2.244) and for (df=13) is 0.0215
so P = 0.0215
significance ∝ = 0.05
we can confidently say that since our p value is less than the significance level, we reject the null hypothesis ( H₀ : ц ≥ 20,500 )
There is sufficient evidence to reject the dealer's claim that the mean price is at least $20,500
