Question

A town official claims that the average vehicle in their area sells for more than the 40^th percentile of your data set. Using the data below, run a hypothesis test to determine if the claim can be supported. State all the important values. Use alpha = .05 to test your claim.

Wrangler Rubicon	$39,440.00
Renegade Trail Hawk	$27,940.00
Grand Cherokee Summit	$22,795.00
TT	$54,795.00
Tahoe	$54,295.00
4Runner	$46,780.00
Blazer Premier	$43,849.00
Aventador	$536,347.00
Range Rover Sport	$70,102.00
Uras	$200,000.00

Answer 1

The command used in excel as follows

Percentile value	45607.6
Sample mean	1,09,634.30
Sample standard deviation	158220.2786
n	10
t	1.279672902
p value	0.883669047
t critical	1.833112933

The answers are:

Test Statistics

Since the sample size is less than 30 so we use a t-test here.

Here 1,09,634.30,u=45607.6,s=158220.2786, n=10

Now we will find the t critical value

Degree of freedom =n-1=9

Using standard normal table we get

Tcritical=1.8333

Since we get that the test statistics is less than T critical value, so we fail to reject H0.

The p-value is 0.884

For,

Since the p-value is greater than alpha the significance level, we fail to reject the null hypothesis Ho.

Conclusion: Hence we accept that Ho that is our claim is not satisfied that the population mean is not greater than the 40 th percentile.

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