Eight SmartCars Were Randomly Selected and the Highway Mileage of Each

question 4

Multiple Choice

Eight SmartCars were randomly selected and the highway mileage of each was noted. The highway mileage per gallon for each car is shown below: $\begin{array} { l l l l l l l l l } 32 & 42 & 29 & 34 & 41 & 37 & 38 & 39 & 40 \end{array}$
It was desired to determine if the median miles per gallon of all SmartCars exceeded 35 miles per gallon. Find the p-value when conducting the Sign Test.

• A) \(\mathrm { p } = 0.145\)
• B) \(p = 0.855\)
• C) \(p = 0.965\)
• D) \(0.035\)

---

Definitions:

American Call Option

A financial derivative allowing the buyer the right, but not the obligation, to buy a specific stock or asset at a predetermined price within a certain time period.

Underlying Asset

The security or asset on which a derivative contract is based, influencing its value and characteristics.

Exercise Price

The predetermined price at which an option's underlying asset can be bought or sold.

Put Option

A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.