Companies often develop and test hypotheses about their products
Refer to in" rel="nofollow">instructions
Order Description
Companies often develop and test hypotheses about their products. Regulatory and consumer protection groups must also test claims resultin" rel="nofollow">ing from hypotheses used to promote products.
Submit a 1- to 2-page paper that addresses the followin" rel="nofollow">ing:
Assume you are workin" rel="nofollow">ing at the Consumer Protection Agency. Recently, you have been gettin" rel="nofollow">ing complain" rel="nofollow">ints about the highway gas mileage of a new min" rel="nofollow">inivan. The car company agrees to allow you to select randomly 41 of its new min" rel="nofollow">inivans to test their highway mileage. The company claims that its min" rel="nofollow">inivans get 28 miles per gallon on the highway. Your test results show a sample mean of 26.7 and a sample standard deviation of 4.2.
Part 1 (Confidence Interval):
Calculate a 95% confidence in" rel="nofollow">interval around your sample mean.
Is the claimed mean in" rel="nofollow">inside your confidence in" rel="nofollow">interval?
What does your result mean, in" rel="nofollow">in terms of the company's claim?
Part 2 (Two-tail test):
List the null and alternative hypotheses for the appropriate test.
Use alpha = 0.05. Fin" rel="nofollow">ind the critical value(s) and calculate the observed value of the test statistic.
Is the observed test statistic in" rel="nofollow">in the critical (rejection) region?
Will the p-value be higher or lower than your alpha? What does this result mean, in" rel="nofollow">in terms of the company's claim?
Part 3 (One-tail test):
List the null and alternative hypotheses for the test.
Use alpha = 0.05.
Fin" rel="nofollow">ind the critical value and calculate the observed value of the test statistic.
Is the observed test statistic in" rel="nofollow">in the critical region??
Will the p-value be higher or lower than your alpha?
What does this result mean, in" rel="nofollow">in terms of the company's claim?
Part 4 (Conclusion):
What conclusions did you reach?
What did you learn from each method of checkin" rel="nofollow">ing the claim for means?
Were there important differences between methods? Which method would you prefer?
Which carries a higher risk of a type I error?
Based on this experience, why do you thin" rel="nofollow">ink it’s important to decide on the method?before conductin" rel="nofollow">ing the test?
Based on your results, do you support the company's claim?
What action, if any, should the company take?
Note: The 1- to 2-page requirement does not in" rel="nofollow">include the graphs you prepare for this Assignment. Embed the graphs you create in" rel="nofollow">in the Word document with your written responses to the questions. Drawin" rel="nofollow">ings may be hand-drawn and either scanned or photographed, or they may be drawn usin" rel="nofollow">ing Min" rel="nofollow">initab or other statistical drawin" rel="nofollow">ing packages.