Question

Use "auto.Dta". The study claims that average price of foreign cars is more than average price of domestic cars. Check validity of this claim by using dataset. Explain and mention all steps that are necessary for decision.

Answer 1

Answer:

Yes.

Explanation:

Yes, the claim of statement ''The study claims that average price of foreign cars is more than average price of domestic cars.'' is correct because the cars which is imported from foreign countries have high duty on them. This duty tax on these cars make them very expensive while on the other hand, the domestic cars have no duty on it so they are lower in price as compared to foreign cars.