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A car dealership is worried that Hondas are getting lower sales than Hyundai. Two independent random samples have been selected 630 observations from population 1 (Hondas) and 610 from population 2 (Hyundai). The sample means obtained are X1(bar)=$46 k and X2(bar)=$47 k. It is known from previous studies that the population variances are 4.1 and 5.0 respectively. Using a level of significance of .05, is there evidence that the Hondas are receiving lower sales? Fully explain your answer.

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The solution provides detailed explanation as to how to perform the null hypothesis test.

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1. Null hypothesis: The sales of Hondas are larger or equal to sales of Hyundai. In mathematical terms, µ1>=µ2.
Alternative hypothesis: the sales of Hondas are smaller than sales of Hyundai. Namely, ...

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