Is the Mean Lifetime of Particular Type of Car Engine

question 26

Multiple Choice

Is the mean lifetime of particular type of car engine greater than 350,000 km? To test this claim,a sample of 23 engines is measured,yielding an average of 365,000 km and a standard deviation of 18,500 km.Use a significance level of 0.01.

• A)Reject the null hypothesis of μ = 350,000 with a P-value of 0.0134.There is sufficient evidence that the engines last longer than 350,000 km on average.
• B)Fail to reject the null hypothesis of μ = 350,000 with a P-value of 0.9933.There is not sufficient evidence that the engines last longer than 350,000 km on average.
• C)Reject the null hypothesis of μ = 350,000 with a P-value of 0.0004.There is sufficient evidence that the engines last longer than 350,000 km on average.
• D)Fail to reject the null hypothesis with a P-value of 0.07352.There is not sufficient evidence that the engines last longer than 350,000 km on average.
• E)There is not enough information to perform the test.

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Definitions:

Automotive Division

A specialized branch within a company focused on the development, manufacturing, and/or sale of vehicles and related automotive products.

Transfer Price

The price charged for goods or services sold between divisions, subsidiaries, or companies under the same control.

Northern Division

Typically refers to a geographical or organizational segment of a business located in the northern part of a country or region.

Transfer Price

The price charged for goods or services transferred between departments or divisions of the same company.