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14. A car dealer who sells only late-model luxury cars recently hired a new salesperson and believes that this salesperson is selling at lower markups. He knows that the long-run average markup in his lot is $5,600. He takes a random sample of 16 of the new salesperson's sales and finds an average markup of $5,000. The standard deviation of all markups is $800. Assume the markups are normally distributed. What is the conclusion of his test if the significance level is 10%? A) p-value = 0.00135; reject the null hypothesis B) p-value = 0.00135; fail to reject the null hypothesis C) p-value=0.10565; reject the null hypothesis D) p-value=0.10565; fail to reject the null hypothesis Show your work (you need to show all the steps of the hypothesis test).

14. A car dealer who sells only late-model luxury cars recently hired a new salesperson and believes that this salesperson is selling at lower markups. He knows that the long-run average markup in his lot is $5,600. He takes a random sample of 16 of the new salesperson's sales and finds an average markup of $5,000. The standard deviation of all markups is $800. Assume the markups are normally distributed. What is the conclusion of his test if the significance level is 10%? A) p-value = 0.00135; reject the null hypothesis B) p-value = 0.00135; fail to reject the null hypothesis C) p-value=0.10565; reject the null hypothesis D) p-value=0.10565; fail to reject the null hypothesis Show your work (you need to show all the steps of the hypothesis test).

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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14. A car dealer who sells only late-model luxury cars recently hired a new salesperson and believes that this salesperson is selling at lower markups. He knows that the long-run average markup in his lot is $5,600. He takes a random sample of 16 of the new salesperson's sales and finds an average markup of $5,000. The standard deviation of all markups is $800. Assume the markups are normally distributed. What is the conclusion of his test if the significance level is 10%? A) p-value = 0.00135; reject the null hypothesis B) p-value = 0.00135; fail to reject the null hypothesis C) p-value=0.10565; reject the null hypothesis D) p-value=0.10565; fail to reject the null hypothesis Show your work (you need to show all the steps of the hypothesis test).
Transcribed Image Text:14. A car dealer who sells only late-model luxury cars recently hired a new salesperson and believes that this salesperson is selling at lower markups. He knows that the long-run average markup in his lot is $5,600. He takes a random sample of 16 of the new salesperson's sales and finds an average markup of $5,000. The standard deviation of all markups is $800. Assume the markups are normally distributed. What is the conclusion of his test if the significance level is 10%? A) p-value = 0.00135; reject the null hypothesis B) p-value = 0.00135; fail to reject the null hypothesis C) p-value=0.10565; reject the null hypothesis D) p-value=0.10565; fail to reject the null hypothesis Show your work (you need to show all the steps of the hypothesis test).
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