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.
a. H0: ? ? 50
Ha: ? > 50
b. t = 3
c. p-value (.0019) is less than .005; reject H0
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