In: Statistics and Probability
An automobile manufacturer claims that its van has a 26.3 miles/gallon (MPG) rating. An independent testing firm has been contracted to test the 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 26.7. Assume the variance is known to be 6.76. A level of significance of 0.1 will be used. State the hypotheses.
Ho:
Ha:
(5) Conclusion
It is concluded that the null hypothesis Ho is rejected. Therefore, there is no enough evidence to claim that its van has a 26.3 miles/gallon (MPG) rating at the 0.1 significance level.