Question

An automobile manufacturer claims that its jeep has a 59.8 miles/gallon (MPG) rating. An independent testing firm has been contracted to test the MPG for this jeep since it is believed that the jeep has an incorrect manufacturer's MPG rating. After testing 160 jeeps, they found a mean MPG of 59.7. Assume the standard deviation is known to be 1.3. A level of significance of 0.02 will be used. Find the value of the test statistic. Round your answer to 2 decimal places. Enter the value of the test statistic.

Answer 1

The value of the test statistic is -0.97

Explanation:

This test is two tailed test.

Null and Alternative hypothesis is as follow

Null Hypothesis is used when it is assumed that there is no significant difference between the values.

Null Hypothesis =
`H_(0)` =
`\mu =` 59.8

The Alternative hypothesis is the alternative of the Null Hypothesis. It is an experimental technique that is used when it is assumed that there is some difference

Alternative Hypothesis =
`H_(a)` =
`\mu \\eq` 59.8

Test statistcs is z

The value of test statistics can be calculated using the following formula

Test Statistics
`= (\bar x - \mu ) / \sigma / \sqrt n`

Test Statistics
`= (59.7-59.8) / 1.3 / \sqrt 160`

Test Statistics = -0.97