Anyone have any ideas on this problem? I'm out of town and trying to get ahead in my online class, but I forgot my book
The First Year Tire Company claims that their NP-16 steel-belted radial tire will last an average of 60,000 or more miles before the tread wears out. Historically, the mileage wear distribution been normal with a standard deviation of 5000 miles. The Customer Protector Magazine has tested 64 tires and found the mean mileage was 58,500 before the tread was worn out. Does the Customer Protector Magazine have evidence that First Year Tire Company is being dishonest with its mileage claim? Conduct a Hypothesis test to provide the Customer Protector Magazine the answer to that question.
This is what I have so far, just from internet research, as this chapter is completely new to me and I haven't read much of the chapter in my book yet. So I could be wrong.
1. The Null hypothesis would be that "First Year's tires are good for AT LEAST 60k miles." The alternative hypothesis would be that the tires are not good for at least 60k miles, and that 58,500 is a more accurate mean number of miles.
2. The level of significance is 0.1, I remember reading in my book that usually for quality assurance hypothesis testing, that is the recommended level of significance.
3. The test statistic is "Z" since the standard deviation IS known.
Any insight on questions 4-6 would be much much appreciated
Thanks.
The First Year Tire Company claims that their NP-16 steel-belted radial tire will last an average of 60,000 or more miles before the tread wears out. Historically, the mileage wear distribution been normal with a standard deviation of 5000 miles. The Customer Protector Magazine has tested 64 tires and found the mean mileage was 58,500 before the tread was worn out. Does the Customer Protector Magazine have evidence that First Year Tire Company is being dishonest with its mileage claim? Conduct a Hypothesis test to provide the Customer Protector Magazine the answer to that question.
- State the Null and Alternate Hypotheses (3 pts)
- Select your level of significance (1 pt)
- Select the test statistic (z, t, F, χ²) (1 pt)
- Formulate the Decision Rule (determine the critical value or values) (3 pts)
- Make a Decision and show the p-value for the test (2 pts)
- Explain the Decision in terms of the problem – What is your conclusion? (10 pts)
This is what I have so far, just from internet research, as this chapter is completely new to me and I haven't read much of the chapter in my book yet. So I could be wrong.
1. The Null hypothesis would be that "First Year's tires are good for AT LEAST 60k miles." The alternative hypothesis would be that the tires are not good for at least 60k miles, and that 58,500 is a more accurate mean number of miles.
2. The level of significance is 0.1, I remember reading in my book that usually for quality assurance hypothesis testing, that is the recommended level of significance.
3. The test statistic is "Z" since the standard deviation IS known.
Any insight on questions 4-6 would be much much appreciated
Thanks.