A Car Dealer Who Sells Only Late-Model Luxury Cars Recently

question 2

Multiple Choice

A car dealer who sells only late-model luxury cars recently hired a new salesman and believes that this salesman is selling at lower markups.He knows that the long-run average markup in his lot is $5600.He takes a random sample of 16 of the new salesman's sales and finds an average markup of $5000 and a standard deviation of $800.Assume the markups are normally distributed.What is the value of an appropriate test statistic for the car dealer to use to test his claim?

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Definitions:

Budgeting

The process of creating a plan to spend your money over a certain period, involving the balancing of income against expenditures.