Discuss the below:
Q: Citrus Rental is a popular car rental agency that has a history of having too few cars available, so that its available cars are overdriven. The mean monthly mileage over the years for Citrus cars has been about 1500 miles per month.
Recently, though, Citrus purchased thousands of new cars, and the company claims that the average mileage of its cars is now less than in the past. To test this, a random sample of 17 recent mileages of Citrus cars was taken. The mean of these 17 mileages was 1468 miles per month, and the standard deviation was 243 miles per month.
Assume that the population of recent monthly mileages of Citrus cars is normally distributed. At the 0.05 level of significance, can it be concluded that the mean recent monthly mileage, μ, of Citrus cars is less than 1500 miles per month?
Perform a one-tailed test. Then fill in the table below.
The null hypothesis: H0:
The alternative hypothesis: H1:
The type of test statistic: (Z, t, Chi squre, or F)
The value of the test statistic
The critical value at the 0.01 level of significance
At the 0.05 level of significance, can it be concluded that the mean recent monthly mileage of Citrus cars is less than 1500 miles per month? (Yes/No)