Question

In: Statistics and Probability

In 2008, a small dealership leased 21 Subaru Outbacks on 2-year leases. When the cars were...

In 2008, a small dealership leased 21 Subaru Outbacks on 2-year leases. When the cars were returned in 2010, the mileage was recorded (see below).

40,003 24,939 14,329 17,380 44,741 44,554 20,229
33,370 24,220 41,702 58,328 35,831 25,790 28,983
25,066 43,357 23,993 43,557 53,670 31,811 36,709
(a)

Is the dealer's mean significantly greater than the national average of 30,162 miles for 2-year leases? Using the 10 percent level of significance, choose the appropriate hypothesis.

a. H0: μ ≤ 30,162 miles vs. H1: μ > 30,162 miles, reject H0 if tcalc > 1.3250
b. H0: μ ≥ 30,162 miles vs. H1: μ > 30,162 miles, reject H0 if tcalc > 1.3250
c. H0: μ ≤ 30,162 miles vs. H1: μ < 30,162 miles, reject H0 if tcalc > 1.3250
d. H1: μ ≤ 30,162 miles vs. H0: μ > 30,162 miles, reject H0 if tcalc > 1.3250
  • a

  • b

  • c

  • d

(b)

Calculate the test statistic. (Round your answer to 2 decimal places.)

  Test statistic   
(c)

The dealer's cars show a significantly greater mean number of miles than the national average at the 10 percent level.

  • Yes

  • No

Solutions

Expert Solution

X : The mileage of care (in miles)

n=21

Sr. No. X X^2
1 40003 1600240009
2 24939 621953721
3 14329 205320241
4 17380 302064400
5 44741 2001757081
6 44554 1985058916
7 20229 409212441
8 33370 1113556900
9 24220 586608400
10 41702 1739056804
11 58328 3402155584
12 35831 1283860561
13 25790 665124100
14 28983 840014289
15 25066 628304356
16 43357 1879829449
17 23993 575664049
18 43557 1897212249
19 53670 2880468900
20 31811 1011939721
21 36709 1347550681
Total 712562 26976952852


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