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In May , CNN reported that sports utility vehicles (SUVs) are plunging toward the "endangered" list. Due to the uncertainty of oil prices and environmental concerns, consumers are replacing gas-guzzling vehicles with fuel-efficient smaller cars. As a result, there has been a big drop in the demand for new as well as used SUVs. A sales manager of a used car dealership for SUVs believes that it takes more than days, on average, to sell an SUV. In order to test his claim, he samples recently sold SUVs and finds that it took an average of 95 days to sell an SUV. He believes that the population standard deviation is fairly stable at days.
b. What is the p-value?
Solution
VerifiedConsidering this task we know that hypotheses look like this:
and a sample of recently sold SUVs while selling one takes on average days, while population standard deviation equals . Do we need to calculate the value of the test statistic and value?
Is the distribution from which the sample was isolated normal, and what test statistics can we use to our advantage?
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