Question

Suppose the mean price for used cars is $10,184. A manager of a Kansas City used car dealership reviewed a sample of 50 recent used car sales at the dealership in an attempt to determine whether the population mean price for used cars at this particular dealership differed from the national mean.

The prices for the sample of 50 cars are shown in the file named UsedCars.

12,400 10,400 12,100 10,000 11,000 8,895 7,675 9,975 6,350 10,470

9,895 11,250 8,795 12,500 9,340 10,150 9,200 9,395 11,000 10,640

10,000 7,500 8,000 10,440 10,200 10,300 9,740 9,280 10,930 8,000

9,000 7,680 9,400 10,730 7,350 12,240 11,970 8,240 9,910 10,080

9,440 8,970 9,500 10,050 10,130 11,400 8,500 7,500 9,090 10,500

(a) Formulate the hypotheses that can be used to determine whether a difference exists in the mean price for used cars at the dealership.

H0: μ ≥ 10,184 Ha: μ < 10,184

H0: μ > 10,184 Ha: μ ≤ 10,184

H0: μ < 10,184 Ha: μ ≥ 10,184

H0: μ = 10,184 Ha: μ ≠ 10,184

H0: μ ≤ 10,184 Ha: μ > 10,184

(b) What is the test statistic? (Round your answer to three decimal places.) What is the p-value? (Round your answer to four decimal places.) p-value =

(c) At α = 0.05, what is your conclusion?

Reject H0. There is insufficient evidence to conclude that the population mean price at this dealership differs from the national mean price of 10,184.

Do not reject H0. There is insufficient evidence to conclude that the population mean price at this dealership differs from the national mean price of 10,184.

Reject H0. There is sufficient evidence to conclude that the population mean price at this dealership differs from the national mean price of 10,184.

Do not reject H0. There is sufficient evidence to conclude that the population mean price at this dealership differs from the national mean price of 10,184.

Answer 1