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    Mileage Significance: National Versus Dealer's Average

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    In 2004, a small dealership leased 21 Chevrolet Impalas on 2-year leases. When the cars were returned in 2006, the mileage was recorded. Is the dealer's mean significantly greater than the national average of 30,000 miles for 2-year leased vehicles, using the 10 percent level of significance?

    Mileage
    40,060 24,960 14,310 17,370 44,740 44,550 20,250
    33,380 24,270 41,740 58,630 35,830 25,750 28,910
    25,090 43,380 23,940 43,510 53,680 31,810 36,780

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    https://brainmass.com/statistics/hypothesis-testing/in-2004-a-small-dealership-leased-21-chevrolet-impalas-on-2-year-leases-171722

    Solution Preview

    Hypotheses: H0: m = 30,000 miles vs. HA: m > 30,000 miles.
    Level of significance: a = 10%
    Decision Rule: Reject the null hypothesis if p-value < ...

    Solution Summary

    This solution calculates whether the dealer's mean was greater than the national average of mileage based on a 10 percent level of significance.

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