A Shipping Firm Suspects That the Mean Life of a Certain

question 49

Essay

A shipping firm suspects that the mean life of a certain brand of tire used by its trucks is less than 40,000 miles.To check the claim, the firm randomly selects and tests 18 of these tires and gets a mean lifetime of 39,300 mileswith a standard deviation of 1200 miles. At α = 0.05, test the shipping firmʹs claim. Round the test statistic tothe nearest thousandth.

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Definitions:

Property Income

Income from the ownership of real estate, tangible and intangible property, such as rentals, royalties, and dividends.

Transfer Payments

Financial payments made by governments that do not require an exchange of goods or services in return.

Money Market Fund

A type of mutual fund that invests in short-term, high-quality debt securities, offering investors liquidity and a low risk of loss.

Transfer Payments

Payments made by governments to individuals without any corresponding service or good being provided in return.