Answer to Question #325519 in Statistics and Probability for wiwili

Question

"It is claimed that a car is driven on the average less than 23100 kilometers per year with a population standard deviation of 2100 kilometers. A company wants to test if their current car model is on par with this average. To test this, a random sample of 70 cars from the company were tested. Suppose you are an analyst of the company, would you suggest to make improvements in your car design if the random sample showed an average of 22100 kilometers? Use a 0.1 level of significance."

a. There is no sufficient data to make a sound conclusion.

b. I would recommend an improvement to the car design to improve performance.

c. I will assume that the cars are on par with the average and recommend to do nothing.

d. I will be certain that there is no need to improve the car design based on the result.

Answer 1

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