SOLUTION: A lorry manufacturer in Africa claims the average annual maintanance cost for its vehicles is \$500.The maintanance department of one of their customersin Kadoma Indstrial estate be

Algebra ->  Algebra  -> Probability-and-statistics -> SOLUTION: A lorry manufacturer in Africa claims the average annual maintanance cost for its vehicles is \$500.The maintanance department of one of their customersin Kadoma Indstrial estate be      Log On

 Ad: Algebrator™ solves your algebra problems and provides step-by-step explanations! Ad: Algebra Solved!™: algebra software solves algebra homework problems with step-by-step help!

 Algebra: Probability and statistics Solvers Lessons Answers archive Quiz In Depth

 Click here to see ALL problems on Probability-and-statistics Question 260671: A lorry manufacturer in Africa claims the average annual maintanance cost for its vehicles is \$500.The maintanance department of one of their customersin Kadoma Indstrial estate believes it to be higher and testss this by selecting a random sample of 6 lorries.The saple gives a mean annual maintanance cost of \$555 with a standard deviation of \$75. Use an appropriate hypothesis test at the 5% significance level to see if the manufacturer's claim is trueAnswer by stanbon(57246)   (Show Source): You can put this solution on YOUR website!A lorry manufacturer in Africa claims the average annual maintanance cost for its vehicles is \$500. The maintanance department of one of their customersin Kadoma Industrial estate believes it to be higher and tests this by selecting a random sample of 6 lorries. The sample gives a mean annual maintanance cost of \$555 with a standard deviation of \$75. Use an appropriate hypothesis test at the 5% significance level to see if the manufacturer's claim is true --- Ho: u = 500 H1: u > 500 ---------------- Critical Value: invT(0.95, with df=5) = 2.0150 Test Stat: t(555) = (555-500)/[75/sqrt(6)] = 1.7963 ----- Conclusion: Since the TS is not in the reject interval, fail to reject Ho. The test results support the manufacturer's claim at the 5% significance level. ====================================================== Cheers, Stan H.