pick one of the following problems and answer the following questions.
1) State the Null and Alternative Hypotheses.
2) Calculate the test statistic.
3) Sketch a drawing of the Normal Distribution and where your test statistic would be in relation to the mean.
4) Find the p-value associated with the test statistic found in Step 2.
5) State your conclusion based on Your p-value. Interpret your conclusion - provide evidence as to why your test statistic and p-value
support or do not support the hypotheses stated in Step I.
Problem 1
Based on information in Statistical Abstract of the United States (116th Edition); the average annual miles driven per vehicle in the United States is 11.1 thousand miles, with c = 600 miles. Suppose that a random sample of 42 vehicles owned by residents of Chicago showed that the average mileage driven last year was 10.75 thousand miles. Does this indicate that the average miles driven per vehicle in Chicago is significantly different from (higher or lower than) the national average? Use a 0.01 level of significance.
Problem 2
The Nero Match Company sells matchboxes that are supposed to have an average of 40 matches per box, with c = 9 matches. A random sample of S6 Nero matchboxes shows the average number of matches per box to be 42.5 matches. Using a 5% level of significance, can you say that the average number of matches per box is more than 40 matches?