According to a leasing firm s reports the mean number of miles driven annually in its leased cars is 12 860 miles with a

Question

According to a leasing firm s reports the mean number of miles driven annually in its leased cars is 12 860 miles with a standard deviation of 3100 miles The company recently starting using new contracts which require customers to have the cars serviced at their own expense The company s owner believes the mean number of miles driven annually under the new contracts is less than 12 860 miles He takes a random sample of 12 cars under the new contracts The cars in the sample had a mean of 11 329 annual miles driven Assume that the population is normally distributed Is there support for the claim at the 0 01 level of significance that the population mean number of miles driven annually by cars under the new contracts is less than 12 860 miles Assume that the population standard deviation of miles driven annually was not affected by the change to the contracts Perform a one tailed test Then answer the questions below Carry your intermediate computations to three or more decimal places and round your responses as specified below a State the null hypothesis Ho and the alternative hypothesis H 0 Ho H b Determine the type of test statistic to use Z t Chi Square 4 F Degrees of freedom if applicable c Find the value of the test statistic Round to three or more decimal places d Find the p value Round to three or more decimal places e Can we support the claim that the population mean number of miles driven annually by cars under the new contracts is less than 12 860 miles Yes

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