An automobile manufacturer has given its jeep a 48.7 miles/gallon (MPG) rating. An independent testing firm has been contracted to test the actual MPG for this jeep since it is believed that the jeep has an incorrect manufacturer's MPG rating. After testing 250 jeeps, they found a mean MPG of 48.9. Assume the population variance is known to be 2.56. A level of significance of 0.01 will be used. Find the value of the test statistic. Round your answer to two decimal places.

Auto Expenses (LO. 2)

Cassandra owns her own business and drives her van 15,000 miles a year for business and 5,000 miles a year for commuting and personal use. She purchases a new van in 2018 and wants to claim the largest tax deduction possible for business use. Cassandra's total auto expenses for 2018 are as follows:

Determine Cassandra's 2018 deduction for business use of the van. (Note: The standard mileage rate for 2018 is 54.5 cents per mile.)

Round all amounts to the nearest dollar.

Cassandra can maximize her deduction by using the standard mileage deduction. Via this method, she can deduct $ for her van. Her other allocable expenses amount to $.____(answer here )_____

Travel Expenses (LO. 3)

Olga has to travel to Philadelphia for 2 days on business. She enjoys history and is planning to visit the Liberty Bell and other historic sites in the city. If time permits, she would like to make a side trip to nearby Gettysburg. A friend of Olga’s tells her, “The best part of traveling on business is that once the business is over, you can sightsee all you want and the cost is tax-deductible.” Olga, who is self-employed, has scheduled her trip for the Labor Day weekend so that she can spend 3 days sightseeing. Complete the letter to Olga which outlines the tax travel expense rules.

Engineers are testing company fleet vehicle fuel economy (miles per gallon) performance by using different types of fuel. One vehicle of each size is tested. Does this sample provide sufficient evidence to conclude that there is a significant difference in treatment means?

(a) Choose the correct statement.

• Fuel type is the blocking factor and vehicle size is the treatment.

• Fuel type is the treatment and vehicle size is the blocking factor.

(b) Fill in the boxes. (Round your SS values to 3 decimal places, F values to 2 decimal places, and other answers to 4 decimal places.)

(c) Choose the correct statement. Use α = 0.05.

• Fuel type means differ significantly and vehicle size is also a significant factor.

• Fuel type means do not differ significantly, but vehicle size is a significant factor.

• Fuel type means differ significantly, but vehicle size is not a significant factor.

• Fuel type means do not differ significantly and vehicle size is not a significant factor.

(d) Which fuel types show a significant difference in average fuel economy? Use α = 0.05. (You may select more than one answer. Click the box with a check mark for the correct answer and click to empty the box for the wrong answer.)

• Ethanol 10% and 87 Octane

• Ethanol 5% and 89 Octane

• 87 Octane and 91 Octane

• Ethanol 10% and 91 Octane

When speed limits were increased from 55 to 65 miles per hour a news item appeared in the Chicago Tribune, which showed that deaths on Illinois highways increased since the speed limits were raised to 65 mph. (a) Assuming that the faster speed caused the deaths, does this prove that cost-benefit analysis was not used in the decision to return to the 65 mph speed limit. (b) What is being implied if we do not go back to the 55 mph limit?

A credit card company wondered whether giving frequent flier miles for every purchase would increase card usage. The population mean had been $2500 per year. A simple random sample of 22 credit card customers found the sample mean to be $2542 with a standard deviation of $110. Test the claim that the credit card mean usage for the population is now different than $2500 per year. (use the traditional approach).

A car company advertises that thir Super Spiffy Sedan averages 29mpg (miles per gallon). You randomly select a sample of Super Spiffies from local car dealerships and test their gas mileage under similar conditions.

You get the following MPG scores:

33 27 32 34 34 28 27 31

Note: SSx = 63.50

Using alpha =.01, conduct the 8 steps to hypothesis testing to determine whether the actual gas mileage for these cars differs significantly from 29mpg.

Engineers are testing company fleet vehicle fuel economy (miles per gallon) performance by using different types of fuel. One vehicle of each size is tested. Does this sample provide sufficient evidence to conclude that there is a significant difference in treatment means?

(b) Fill in the boxes. (Round your SS values to 3 decimal places, F values to 2 decimal places, and other answers to 4 decimal places.)

Engineers are testing company fleet vehicle fuel economy (miles per gallon) performance by using different types of fuel. One vehicle of each size is tested. Does this sample provide sufficient evidence to conclude that there is a significant difference in treatment means?

  Click here for the Excel Data File

(a) Choose the correct statement.

• Fuel type is the blocking factor and vehicle size is the treatment.

• Fuel type is the treatment and vehicle size is the blocking factor.

(b) Fill in the boxes. (Round your SS values to 3 decimal places, F values to 2 decimal places, and other answers to 4 decimal places.)

(c) Choose the correct statement. Use α = 0.05.

• Fuel type means differ significantly and vehicle size is also a significant factor.

• Fuel type means do not differ significantly, but vehicle size is a significant factor.

• Fuel type means differ significantly, but vehicle size is not a significant factor.

• Fuel type means do not differ significantly and vehicle size is not a significant factor.

(d) Which fuel types show a significant difference in average fuel economy? Use α = 0.01. (You may select more than one answer. Click the box with a check mark for the correct answer and click to empty the box for the wrong answer.)

• Ethanol 10% and Ethanol 5%

• 89 Octane and 87 Octane

• Ethanol 5% and 91 Octane

• Ethanol 10% and 91 Octane

Let’s return to Tuftsville (Chapter 10) where everyone lives along Main Street, which is 10 miles long. There are 1,000 people uniformly spread up and down Main Street, and every day they each buy fruit smoothie from one of the two stores located at either end of the street. Customers ride their motor scooters to and from the store, using $0.50 worth of gas per mile. Customers buy their smoothies from the store offering the lowest price, which is the store’s price plus the customer’s travel expenses getting to and from the store. Ben owns the store at the west end of Main Street and Will owns the store at the east end of Main Street. The marginal cost of a smoothie is constant and equal to $1 for both Ben and Will. In addition, each of them pays Tuftsville $250 per day for the right to sell smoothies.

a. Ben sets his price p1 first and then Will sets his price p2. After the prices are posted consumers get on their scooters and buy from the store with the lowest price including travel expenses. What prices will Ben and Will set?

b. How many customers does each store serve and what are their profits?