It Is Claimed That Automobiles Are Driven On Average More Than 2
It Is Claimed That Automobiles Are Driven On Average More Than 2
Question:
It is claimed that automobiles are driven on average more than 20,000 kilometers per year. To test this claim, 100
randomly selected automobile owners are asked to keep a record of the kilometers they travel. Would you agree
with this claim if the random sample showed an average of 23,500 kilometers and a standard deviation of 3,900
kilometers? Use a P-value in your conclusion.
Testing of Hypothesis:
Hypothesis testing is a way to check whether the claim made is valid or not for the entire population based on the
given sample. In this problem, we will test a claim about mean driving distance per year.
Given X 2
∼ N (μ, σ ) where σ is not known; sample standard deviation s=3900 and n (the sample size) = 100
σ
⇒ X̄ ∼ N (μ, )
√n
Note: For a symmetric distribution n ≥ 30 is considered large and in such cases we use the z-test, otherwise we
would use the t-test
We reject H0 in favour of the alternative hypothesis if the p-value is less than the predefined level of significance α
.
X−μ 23500−20000
Z = s ∼ N (0, 1) ⇒ Z = 3900
∼ N (0, 1) ⇒ Z = 8.97
√n 10
Since p-value is less than α = 0.05, we reject the null hypothesis and conclude that the automobiles are driven on
average of more than 20,000 kms per year.
Here since α is not given, we assume it to be at 5%.
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Chapter 14 / Lesson 2
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Learn about the null hypothesis and the alternative hypothesis. Compare null vs alternative hypothesis examples
and study the differences, as well as significance.
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