## Related questions with answers

In May $2008$, 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 $90$ days, on average, to sell an SUV. In order to test his claim, he samples $40$ 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 $20$ days.

b. What is the p-value?

Solution

VerifiedConsidering this task we know that hypotheses look like this:

$\begin{aligned} H_0&:\mu\leq90\\ H_A&:\mu>90 \end{aligned}$

and a sample of $n = 40$ recently sold SUVs while selling one takes on average $\overline {x} = 95$ days, while population standard deviation equals $\sigma = 20$. Do we need to calculate the value of the test statistic and $p-$ value?

*Is the distribution from which the sample was isolated normal, and what test statistics can we use to our advantage?*

## Create an account to view solutions

## Create an account to view solutions

## More related questions

1/4

1/7