A researcher wishes to see if the mean number of days that a basic, low-price, s

Question

A researcher wishes to see if the mean number of days that a basic, low-price, small automobile sits on a dealer's lot is greater than 29 days. A sample of 50 automobile dealers has a mean of 30.1 days for basic, low-price, small automobiles. At alpha= 0.05, test the claim that the mean time is greater than 29 days. The standard deviation of the population is 3.8 days.
State the null and alternative hypothesis:
Find the test statistic and p-value.
Is the data statistically significant?

Explanation / Answer

Ho: u= 29 Ha : u>29 Test statistic is (30.1-29)/(3.8/sqrt50)= 2.05 (P value is .0202 from normal curve table). Since p value is less than .05 we reject the null hypothesis (thus the data is statistically significant at the .05 level), and say the mean is greater than 29 days.

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