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 Ira Jim Kelly 52 3 50 0 534 37 9 264 4 25 2 41 2 23 2 26 9 27 3 3430 731 6 43 8 19 6 41 2 60 3 34 3 52 0 23 3 39 44 2

Question: 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

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 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.

Ira Jim Kelly 52.3 50.0 534 37.9 264 4 25.2 41.2 23.2 26.9 27.3 3430.731.6 43.8 19.6 41.2 60.3 34.3 52.0 23.3 39 44.2

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