In: Statistics and Probability
A used car dealer says that the mean price of a three-year-old sports utility vehicle is $23,000. You suspect this claim is incorrect and find that a random sample of 24 similar vehicles has a mean price of $23,870 and a standard deviation of $1986. Is there enough evidence to reject the claim at α=0.01? (a) Write the claim mathematically and identify (B) What is(are) the critical value(s) Determine the rejection region(s). (C) Find the standardized test statistic t. (d) Decide whether to reject or fail to reject the null hypothesis.