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Hypothesis testing

The "Mars" division of a big auotmobile manufacturer specializes in manufacturing scooters for export. The company claims that these scooters average at least 55 miles per gallon in city driving. An independant consumer avocate road tested a sample of 25 scooters. The sample showed an average of 60 miles per gallon, with a standard deviation of 10 miles per gallon. At 0.10 level of significance, can the company's claim be rejected?

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This company's claims cannot be rejected. You will notice that they say the scooters get AT LEAST 55 miles to the gallon ...

Solution Summary

Steps in hypothesis testing are shown.