October 13, 2015

Homework Help: Prob and Stat

Posted by Angela on Tuesday, May 17, 2011 at 2:15pm.

A tire manufacturer guarantess that its tires will last for at least 60,000 miles. If the tire fails earlier, the manufacturer offers a prorated replacement. Too many such replacements are bad for business, so the manufacturer tests tires at random to see whether corrective action is needed on the production line. A random sample of (n = 49 tires). is examined. The average durability is (xbar = 58,000 miles), with a standard deviation of (s = 7000 miles). At the .05 level should the manufacturer be satisfied that its claim is valid? Be sure to state your hypothesis and your basis for rejecting or not rejecting the null hypothesis (sample Z test statistic and rejection threshold)

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