According to a leasing firms reports, the mean number of miles driven annually in its leased cars is 13,140 miles with a standard deviation of 3060 miles. The company recently starting using new contracts which requires customers to have the cars serviced at their own expense. The company owner believes the mean number of miles driven annually under the new contracts, u, is less than 13, 140 miles. He takes a random sample of 27 cars under the new contracts. The cars in the sample had a mean of 11,840 annual miles driven. Assume that the population is normally distributed. Is there support for the claim, at the 0.05 level of significance, that the population mean number of miles driven annually by cars under the new contracts, is less than 13,140 miles? Assume that the population standard deviation of miles driven annually was not affected by the change to the contracts..

Perform a one-tailed test.

Carry your intermediate computations to 3 or more decimal places.

a). State the null and alternative hypothesis

b). Determine what type of test statistic to use

c). Find the value of the test statistic. ( round to 3 or more decimal places)

d). Find the p-value ( round to 3 or more decimal places)