# Question: A local car dealership is interested in determining how successful

A local car dealership is interested in determining how successful their salespeople are in turning a profit when selling a car. Specifically, they are interested in the average percentage of price markups earned on various car sales. The following table lists the percentages of price markups for a random sample of car sales by three salespeople at this dealership. Note that here the markups are calculated as follows. Suppose an auto dealer pays $14,000 for a car and lists the sale price as $20,000, which gives a markup of $6000. If the car is sold for $17,000, the markup percentage earned on this sale is 50% ($3000 is half of $6000).

a. Test at a 5% significance level whether the average markup percentage earned on all car sales is the same for Ira, Jim, and Kelly.

b. What is the Type I error in this case, and what is the probability of committing such an error? Explain.

a. Test at a 5% significance level whether the average markup percentage earned on all car sales is the same for Ira, Jim, and Kelly.

b. What is the Type I error in this case, and what is the probability of committing such an error? Explain.

## Relevant Questions

A farmer wants to test three brands of weight-gain diets for chickens to determine if the mean weight gain for each of these brands is the same. He selected 15 chickens and randomly put each of them on one of these three ...Suppose that you are a reporter for a newspaper whose editor has asked you to compare the hourly wages of carpenters, plumbers, electricians, and masons in your city. Since many of these workers are not union members, the ...Describe the main characteristics of an F distribution. People who have home gaming systems, such as Wii™, Play station™, and Xbox™, are well aware of how quickly they need to replace the batteries in the remote controls. A consumer agency decided to test three major brands ...Refer to the data given in Exercise 13.98 on the living area (in square feet) and price (in thousands of dollars) of 10 randomly selected houses listed for sale in a city. Construct a 98% confidence interval for the mean ...Post your question