Question 122474This question is from textbook Statistical Techniques in Business and Economics,
: For Exercises 5–8: (a) State the null hypothesis and the alternate hypothesis. (b) State the decision rule. (c) Compute the value of the test statistic. (d) What is your decision regarding H0? (e) What is the p-value? Interpret it.
5) The manufacturer of the X-15 steel-belted radial truck tire claims that the mean mileage the tire can be driven before the tread wears out is 60,000 miles. The standard deviation of the mileage is 5,000 miles. The Crosset Truck Company bought 48 tires and found that the mean mileage for their trucks is 59,500 miles. Is Crosset's experience different from that claimed by the manufacturer at the .05 significance level?
This question is from textbook Statistical Techniques in Business and Economics,
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! 5) The manufacturer of the X-15 steel-belted radial truck tire claims that the mean mileage the tire can be driven before the tread wears out is 60,000 miles. The standard deviation of the mileage is 5,000 miles. The Crosset Truck Company bought 48 tires and found that the mean mileage for their trucks is 59,500 miles. Is Crosset's experience different from that claimed by the manufacturer at the .05 significance level
(a) State the null hypothesis and the alternate hypothesis.
Ho: mu= 60,000
Ha: mu is not equal to 60,000
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Two-tailed test because of the Ha statement of "not equal to".
Critical Values: z = +-1.96
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Test Statistic:
z(59,500) = (59,500-60,000)/[5000/sqrt(48)] = -0.6928
p-value = P(z<-0.6928))= 0.2442
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Conclusion: Since 0.2442 > 0.025, fail to reject Ho.
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Cheers,
Stan H.
(b) State the decision rule. (c) Compute the value of the test statistic. (d) What is your decision regarding H0? (e) What is the p-value? Interpret it.
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