Question 191494:  A consumer advocacy group is doing a large study on car rental practices. Among other things, the consumer group would like to do a statistical test regarding the mean monthly mileage,m , of cars rented in the U.S. this year. The consumer group has reason to believe that the mean monthly mileage of cars rented in the U.S. this year is different from last year's mean, which was 2850 miles. 
 
The group plans to do a statistical test regarding the value of m. It chooses a random sample of monthly mileages and computes the mean of the sample to be 2675  miles and the standard deviation to be 800 miles. 
 
Based on this information, answer the questions below.
 
What are the null hypothesis (H o) and the alternate hypothosis (H1)that should be used for the test?
 
 
  
 
 Answer by stanbon(75887)      (Show Source): 
You can  put this solution on YOUR website! A consumer advocacy group is doing a large study on car rental practices. Among other things, the consumer group would like to do a statistical test regarding the mean monthly mileage,m , of cars rented in the U.S. this year. The consumer group has reason to believe that the mean monthly mileage of cars rented in the U.S. this year is different from last year's mean, which was 2850 miles. 
Ho: u = 2850 
   
The group plans to do a statistical test regarding the value of m. It chooses a random sample of monthly mileages and computes the mean of the sample to be 2675 miles and the standard deviation to be 800 miles.  
Based on this information, answer the questions below.  
What are the null hypothesis (H o) and the alternate hypothosis (H1)that should be used for the test?  
H1: u < 2850 one-tail test if you let the sample guide the decision making 
or H1: u is not equal to 2850 if you just want to challenge the consumer  
groups standard of 2850. 
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Cheers, 
Stan H. 
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