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Ahmadi, Inc. has been manufacturing small automobiles that have averaged 50 miles per gallon of gasoline in highway driving. The company has developed a more efficient engine for its small cars and now advertises that its new small cars average more than 50 miles per gallon in highway driving. An independent testing service road-tested 64 of the automobiles. The sample showed an average of 51.5 miles per gallon with a standard deviation of 4 miles per gallon.
a.Formulate the hypotheses to determine whether or not the manufacturer's advertising campaign is legitimate.
b.Compute the test statistic.
c.What is the p-value associated with the sample results and what is your conclusion? Let = .05.
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