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A car company claims to only have a carbon dioxide emissions of .7. You think it’s...

A car company claims to only have a carbon dioxide emissions of .7. You think it’s higher. You collect 100 cars and test the carbon dioxide. You find an average of .75 with a sample standard deviation of .1. Perform a test of hypothesis with an alpha of 10%.

Solutions

Expert Solution

Ho :   µ =   0.7                  
Ha :   µ >   0.7       (Right tail test)          
                          
Level of Significance ,    α =    0.10                  
sample std dev ,    s =    0.1000                  
Sample Size ,   n =    100                  
Sample Mean,    x̅ =   0.7500                  
                          
degree of freedom=   DF=n-1=   99                  
                          
Standard Error , SE = s/√n =   0.1000   / √    100   =   0.0100      
t-test statistic= (x̅ - µ )/SE = (   0.750   -   0.7   ) /    0.010   =   5.000
                          
  
p-Value   =   0.0000   [Excel formula =t.dist(t-stat,df) ]              
Decision:   p-value<α, Reject null hypothesis                       
Conclusion: There is enough evidence to reject the company's claim at α=0.10.


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