In: Statistics and Probability
An automobile manufacturer has given its van a 46.3 miles/gallon (MPG) rating. An independent testing firm has been contracted to test the actual MPG for this van since it is believed that the van has an incorrect manufacturer's MPG rating. After testing 250 vans, they found a mean MPG of 46.4. Assume the population standard deviation is known to be 2.0. A level of significance of 0.01 will be used. Make the decision to reject or fail to reject the null hypothesis.