Question

Begin this discussion by first stating your intended future career. Then give an example from your intended future career of a Population Mean that you would like to do a Hypothesis Test for. The target Population of your Hypothesis Test activities must be included in your discussion along with the unit of measurement that you are using. As shown in the text your Null and Alternative hypothesis MUST include the symbol for a Population Mean along with your hypothesized claimed numerical value for this parameter.

Answer 1

Make a decision regarding the null hypothesis based on the sample information and interpret the results of the test, state whether we proved or disproved the null hypothesis and why the data proves this.

since i am an automobile lover i am giving an automobile field example

A company needs to purchase company cars for their sales staff. They contacted their local Ford dealership and inquired as to the price of a 2007 Ford Explorer 4X4 XLT. The dealership stated that the average price (μ) of this vehicle in Maryland is $29,995. The company took a random sample of 20 (n) Ford dealerships in Maryland and found that the mean price was $30,474.8, with a standard deviation of $1972.592. If we assume that the cost of the automobile throughout Maryland is normally distributed, there should be enough evidence to conclude, with the 0.1 level of significance if the mean (μ) is less than $29,995.

This is a one-tailed test.

Null hypothesis (H0): μ > 29995

Alternative hypothesis (H1): μ < 29995

Type of test statistic: t-test statistic with 20-1=19 degrees of freedom

If the test value falls into the rejection range, then there is enough evidence, at the 0.1 level of significance that the mean cost of the automobile is less than or equal to 29,995