One of the Major U

question 11

Multiple Choice

One of the major U.S. tire makers wishes to review its warranty for their rainmaker tire. The warranty is for 40,000 miles. The tire company believes that the tire actually lasts more than 40,000 miles. A
Sample 49 tires revealed that the mean number of miles is 45,000 miles with a standard deviation of
15,000 miles. Test the hypothesis with a 0.05 significance level.

• A) At a 5% level of significance, our decision is to reject the null hypothesis. The tires last more than 40 000 miles.
• B) At a 5% level of significance, our decision is to accept the null hypothesis. The tires last 40,000 miles.
• C) At a 5% level of significance, we should have used the t-test, rather than the z-test.
• D) None of these statements is correct.

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Definitions:

Luxury Automobiles

High-end vehicles that offer superior comfort, performance, and features, targeting a segment of consumers seeking prestige and exclusivity.

Income Levels

Categories of annual or monthly earnings that individuals or households fall into based on the amount of money they make.

Demand

The quantity of a good or service that consumers are willing and able to purchase at a given price.

Time Management

The practice of organizing and planning how to divide one's time between specific activities to increase efficiency and productivity.