Tire Rotation The Manager of a Service Station Is in the Process

question 117

Essay

Tire Rotation
The manager of a service station is in the process of analyzing the number of times car owners rotate the tires on their cars.She believes that the average motorist rotates his or her car's tires less frequently than recommended by the owner's manual (two times per year).In a preliminary survey she asked 14 car owners how many times they rotated their cars' tires in the last 12 months.The results are 1, 1, 2, 0, 3, 3, 0, 1, 0, 1, 2, 3, 3, and 1.
-The air pumps at service stations come equipped with a gauge to regulate the air pressure of tires.A mechanic believes that the gauges are in error by at least 3 pounds per square inch.To test his belief he takes a random example of 50 air pump gauges and determines the difference between the true pressure (as measured by an accurate measuring device) and the pressure shown on the air pump gauge.The mean and the standard deviation of the sample are = 3.4 and s = 1.2.Can the mechanic infer that he is correct at the 5% significance level? Assume tire pressures have a normal distribution.

Examine graphical representations of changes in demand and quantity demanded.

Understand the implications of the law of demand on market dynamics.

Understand how changes in the price of goods and their complements or substitutes affect demand.

Comprehend the concept of inferior and normal goods and how income changes impact demand.