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The Department of Transportation would like to test the hypothesis that the average age of cars on ...

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The Department of Transportation would like to test the hypothesis that the average age of cars on ...

The Department of Transportation would like to test the hypothesis that the average age of cars on the road is less than 12 years. A random sample of 45 cars had an average age of 10.6 years. It is believed that the population standard deviation for the age of cars is 4.1 years. The Department of Transportation would like to set α = 0.05. The conclusion for this hypothesis test would be that because the test statistic is ______________________________________.

▸ more than the critical value, we can conclude that the average age of cars on the road is less than 12 years

▸ more than the critical value, we cannot conclude that the average age of cars on the road is less than 12 years

▸ less than the critical value, we can conclude that the average age of cars on the road is less than 12 years

▸ less than the critical value, we cannot conclude that the average age of cars on the road is less than 12 years

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Business Statistics

Edition: 2^nd

Author: Donnelly

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