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A tire manufacturer wants to test a sample of 100 of its tires. Thestandard devi

ID: 2954846 • Letter: A

Question

A tire manufacturer wants to test a sample of 100 of its tires. Thestandard deviation of mileage is 2,500. In a SRS of 100 tires, themean mileage is x-bar= 59,000. The manufacturer claims that the mean mileage is is 60,000,and a consumer group believes it is less than that. - Is there sufficient evidence to support the manufacturer'sclaim? Carry out an appropriate test at 5% significance level.[Verifying conditions not necessary] -Would your conclusion be any different if the test werecarried out at a 1% significance level? explain. - In words, what would constitute a type 1 error in context ofthe problem. The manufacturer claims that the mean mileage is is 60,000,and a consumer group believes it is less than that. - Is there sufficient evidence to support the manufacturer'sclaim? Carry out an appropriate test at 5% significance level.[Verifying conditions not necessary] -Would your conclusion be any different if the test werecarried out at a 1% significance level? explain. - In words, what would constitute a type 1 error in context ofthe problem.

Explanation / Answer

Given n=100, xbar=59000, s=2500 -------------------------------------------------------------------------------- (a) Given =0.05, Z(0.05)=-1.645 (check normal table) The test statistic is Ho:>=60000 Ha:
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