A new car manufacturing company has emerged and has claimed that its new hybrid car, the Pusho, gets a better gas mileage than the highest ranked Toyota Prius. Consumer Reports Magazine decides to test this claim at a 5% level of significance. Consumer Reports randomly selects 10 of each type of car, calculates the miles per gallon for each car in the study, and records the data in the table below. Assume miles per gallon of the cars is normally distributed.
A. Evaluate the claim that the Pusho gets a better gas mileage than the highest ranked Prius using the data from the Consumer Reports study.
1. Identify the type of test you will use to test this claim. Explain your reasoning.
2. State the null and alternate hypotheses.
3. Conduct the hypothesis test and determine the p-value.
4. State your conclusion about the claim.
5. Construct a 90% confidence interval for this study.
Suppose that Toyota makes a counter-claim that their Prius has a higher gas mileage than Pusho.
How could the alternative hypotheses from Part A be changed to test Toyota’s claim?
Conduct the hypothesis test at the 5% level of significance for Toyota’s claim using the data above and determine the p-value.
State your conclusion about the claim.
Construct a 98% confidence interval for this study.
C. Based on your analysis of both claims from the makers of Pusho and Prius, what statement can be made about the miles per gallon of the two cars? Explain your reasoning.
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