Remaining Question Below... True / False: The null hypothesis in this case would be H0: 渭 > $11,500 .?

A car company claims that the average price of their new car is less than $11,500 with a standard deviation of $2000. You feel that the average price is more than the company claims so you check the price stickers on 32 cars and find the average price is $12,200.





At 伪 = 0.01, there is sufficient evidence to reject the null hypothesis, H0 : 渭 %26lt; $11,500 .














True





FalseRemaining Question Below... True / False: The null hypothesis in this case would be H0: 渭 %26gt; $11,500 .?
The first point to note is that you can't have a null hypothesis of mean %26lt; $11000. The null hypothesis must be precise so that calculations can be made from it. The only one that makes sense here is


Ho: mean = $11500 and Hi mean %26gt; $11500





You need to find the standard error of the mean


= population standard deviation/sqrt(sample size)


It will be a one-tailed test as a low sample mean would hardly help your contention that the dealership has deliberately set the mean too low.


Thus your critical region will be the top 1% of the standard normal variable, i.e. z %26gt; 2.33


Use formula z = (x - mean)/s.e. to convert from your normal to the standard normal.


Take it from there.