Ahmadi, Inc., has been manufacturing small automobiles that have averaged 50 miles per gallon of gasoline in highway driving.The company has developed a more efficient engine for its small cars and now advertises that its new small cars average more than 50 miles per gallon in highway driving.An independent testing service road-tested 64 of the automobiles.The sample showed an average of 51.5 miles per gallon with a standard deviation of 4 miles per gallon.
a.
Formulate the hypotheses to determine whether or not the manufacturer's advertising campaign is legitimate.
b.
Compute the test statistic.
c.
What is the p-value associated with the sample results and what is your conclusion? Let α = .05.

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The Answer of Ahmadi, Inc., has been manufacturing small automobiles that have averaged 50 miles per gallon of gasoline in highway driving.The company has developed a more efficient engine for its small cars and now advertises that its new small cars average more than 50 miles per gallon in highway driving.An independent testing service road-tested 64 of the automobiles.The sample showed an average of 51.5 miles per gallon with a standard deviation of 4 miles per gallon.
a.
Formulate the hypotheses to determine whether or not the manufacturer's advertising campaign is legitimate.
b.
Compute the test statistic.
c.
What is the p-value associated with the sample results and what is your conclusion? Let α = .05.