BLANK 2: INSUFFICIENT OR SUFFICIENT Blank3:support or reject A car company says

Question

BLANK 2: INSUFFICIENT OR SUFFICIENT

Blank3:support or reject

A car company says that the mean gas mileage for its luxury sedan is at least 25 miles per gallon (mpg). You believe the claim is incorrect and find that a random sample of 7 cars has a mean gas mileage of 22 mpg and a standard deviation of 4 mpg. At o -0.05, test the company's claim. Assume the population is normally distributed. Click here to view the t-distribution table. Click here to view page 1 of the normal table Click here to view page 2 of the norma table. Which sampling distribution should be used and why? O A. Use a normal sampling distribution because n 30 O B. Use a normal sampling distribution because the population is normal, and o is known. O C. Use a normal sampling distribution because the O D. Use a t-sampling distribution because the population is population is normal, and o is unknown. normal, and o is unknown. O E. Use a t-sampling distribution because n

Explanation / Answer

1)sampling distribution: option D -t distribution, normal population, sigma unknown

here std error=std deviation/(n)1/2 =1.51

hence test statistics=(X-mean)/std error=(22-25)/1.51 =-1.9843

critical value =-1.9432

Reject Ho at the.....there is sufficient evidence to reject ...........

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