Ahmadi, Inc has been manufacturing small automobiles that have averaged 50 miles per gallon of gasoline in highway driving. The company has developed a more efficient engine for its small cars and now advertises that its new small cars average more than 50 miles per gallon in highway driving. An independent testing service road-tested 64 of the automobiles. The sample showed an average of 51.5 miles per gallon with a standard deviation of 4 miles per gallon.
a. Formulate the hypotheses to determine whether or not the manufacturer's advertising campaign is legitimate.
b. Compute the test statistic.
c. What is the p-value associated with the sample results and what is your conclusion? Let = .05.
Question 2
A lathe is set to cut bars of steel into lengths of 6 centimeters. The lathe is considered to be in perfect adjustment if the average length of the bars it cuts is 6 centimeters. A sample of 121 bars is selected randomly and measured. It is determined that the average length of the bars in the sample is 6.08 centimeters with a standard deviation of 0.44 centimeters.
a. Formulate the hypotheses to determine whether or not the lathe is in perfect adjustment.
b. Compute the test statistic.
c. Using the p-value approach, what is your conclusion? Let = .05.
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