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    Five step hypothesis testing for mean with one sample

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    The manufacturer of the X-15 steel-belted radial truck tire claims that the mean mileage the tire can be driven before the tread wears out is 60,000 miles. The standard deviation of the mileage is 5,000 miles. The Crosset Truck Company bought 48 tires and found that the mean mileage for their trucks is 59,500 miles. Is Crosset's experience different from that claimed by the manufacturer at the .05 significance level?

    Set this up using the five step hypothesis testing procedure and state your decision and recommendation without using statistical jargon.

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    Solution Preview

    See the attached file for complete solution. The text here may not be copied exactly as some of the symbols / tables may not print. Thanks

    Step 1: Set the hypothesis. The claim of the Crosset's that the mileage is less than 60,000 miles will be the alternate hypothesis.
    H0 = Mean mileage is ...

    Solution Summary

    This post explains the step-by-step process for conducting five-step hypothesis testing for mean with one sample. The steps are explained with formulas and calculations along with interpretation of the final results. The post will help students learn the hypothesis testing and result interpretation in easy way.