Question: A consumer advocacy group is doing a large study on car rental practices. Among other things, the consumer group would like to do a statistical
A consumer advocacy group is doing a large study on car rental practices. Among other things, the consumer group would like to do a statistical test regarding the mean monthly mileage,
, of cars rented in the U.S. this year. The consumer group has good reason to believe that the mean monthly mileage of cars rented in the U.S. this year is different from last year's mean, which was
2750
miles.
The group plans to do a statistical test regarding the value of
. It chooses a random sample of monthly mileages and computes the mean of the sample to be
2575
miles and the standard deviation to be
750
miles.
Based on this information, complete the parts below. What are the null hypothesis
H0
and the alternative hypothesis
H1
that should be used for the test? Suppose that the group decides to reject the null hypothesis. What sort of error might it be making? Suppose the true mean monthly mileage of cars rented in the U.S. this year is
2750
. Fill in the blanks to describe a Type I error.
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