Question

An engineering company is promoting a new device that it claims can reduce fuel consumption of buses. Rapid Pauh plans to purchase the device. The maintenance record shows the mean and standard deviation of the fuel consumption of a bus is 7.2 and 1.2 litre per-kilometre. State the null and alternative hypothesis to determine the company's claim. (i) State the rejection with level of significance, a 0.05 (ii) (6 marks)

Answer 1

The nul and alternate hypothesis would be respcctively: a) Ho : u7.2 На : р < 7.2 b) we will use the following test statistic: T-7.2 N(0,1) Z 1.2/V Hence at 5% confidence level, the rejcction region for the null hypothesis is (-0о, — 20.05) — (-0, —1.645)