A Consumer Group Plans to Test Whether a New Passenger

question 159

Multiple Choice

A consumer group plans to test whether a new passenger car that is advertised to have a mean highway miles per gallon of at least 33 actually meets this level. They plan to test the hypothesis using a significance level of 0.05 and a sample size of n = 100 cars. It is believed that the population standard deviation is 3 mpg. Based upon this information, if the "true" population mean is 32.0 mpg, what is the probability that the test will lead the consumer group to "accept" the claimed mileage for this car?

• A) About 0.45
• B) Approximately 0.0455
• C) About 0.9545
• D) None of the above

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Definitions:

Low-Probability

Referring to events or outcomes that have a small chance of occurring, often used in risk assessment and decision-making processes.

High-Impact Event

A significant occurrence that has a major influence or effect on an individual, group, organization, or system.

Organizational Crisis

A significant threat to operations that can have damaging consequences if not managed properly, requiring immediate and effective responses.

Inadequate Control

A situation in management or systems wherein the controls are insufficient to ensure the proper functioning, compliance, or quality standards, leading to risks and errors.