A Consumer Group Plans to Test Whether a New Passenger

question 76

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 reject the claimed mileage for this car?

• A) About 0.075
• B) Approximately 0.95
• C) 0.05
• D) None of the above

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Definitions:

Undue Influence

The excessive pressure or influence by one person over another, leading to decisions or actions that do not reflect the true intentions of the influenced party.

Shared Mistake

The same mistake made by both parties to a contract.

Unilateral Mistake

A situation where only one party to a contract is mistaken about a fundamental aspect of the contract, affecting the agreement's validity.

Original Party

The initial entities or individuals who entered into a contract or agreement.