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In: Statistics and Probability

A car company claims that its new SUV gets better gas mileage than its competitor’s SUV....

A car company claims that its new SUV gets better gas mileage than its competitor’s SUV. A random sample of 35 of its SUVs has a mean gas mileage of 12.6 miles per gallon (mpg). The population standard deviation is known to be 0.4 mpg. A random sample of 31 competitor’s SUVs has a mean gas mileage of 12.4 mpg. The population standard deviation for the competitor is known to be 0.3 mpg. Test the company’s claim at the 0.05 level of significance.

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