Refer to Exercise 54 (Plexon Tires). Use the p value approach to answer the following questions.
In exercise
Plexon Tire and Rubber Company claims that its Delton III tires have an average life of at least 50,000 miles. You take a random sample of 50 Delton III tires to test Plexon’s claim. The average life for the tires in your sample is 49,100 miles. Is this sufficient sample evidence to challenge Plexon’s claim? Set up an appropriate hypothesis test using Plexon’s claim as the null hypothesis. Use a significance level of 10%. As you proceed,
a. Is the sample result of 49,100 miles statistically significant at the 10% significance level?
b. Would this sample result be significant at the 5% level? At the 1% level?
c. What is the minimum significance level at which the sample result would be considered statistically significant?

  • CreatedJuly 16, 2015
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