Ten used cars from a rental fleet are randomly selected.Each vehicle's annual maintenance cost from the previous calendar year (y) is recorded as well as the vehicle's current mileage (x).A simple linear regression is conducted on the data.

Conduct a test of hypothesis to see if there is sufficient evidence to conclude that used vehicles with 22,500 miles will have a mean annual maintenance cost that exceeds $400.Select the appropriate critical value (CV), test statistic (TS), and decision.(Use α = 0.05).(Given: Sxx= 803,667,7024 and = $43,627.700.)
A) CV = 1.8331; TS = 0.1415; fail to reject H₀
B) CV = 1.8595; TS = 0.02611; fail to reject H₀
C) CV = 1.8331; TS = 0.2986; fail to reject H₀
D) CV = 1.8595; TS = 0.3589; fail to reject H₀

Question

Ten used cars from a rental fleet are randomly selected.Each vehicle's annual maintenance cost from the previous calendar year (y) is recorded as well as the vehicle's current mileage (x).A simple linear regression is conducted on the data. ​

Conduct a test of hypothesis to see if there is sufficient evidence to conclude that used vehicles with 22,500 miles will have a mean annual maintenance cost that exceeds $400.Select the appropriate critical value (CV), test statistic (TS), and decision.(Use α = 0.05).(Given: Sxx= 803,667,7024 and  = $43,627.700.)
A) CV = 1.8331; TS = 0.1415; fail to reject H₀ 
B) CV = 1.8595; TS = 0.02611; fail to reject H₀ 
C) CV = 1.8331; TS = 0.2986; fail to reject H₀ 
D) CV = 1.8595; TS = 0.3589; fail to reject H₀

Quizplus · Accepted Answer

The Answer of Ten used cars from a rental fleet are randomly selected.Each vehicle's annual maintenance cost from the previous calendar year (y) is recorded as well as the vehicle's current mileage (x).A simple linear regression is conducted on the data. ​

Conduct a test of hypothesis to see if there is sufficient evidence to conclude that used vehicles with 22,500 miles will have a mean annual maintenance cost that exceeds $400.Select the appropriate critical value (CV), test statistic (TS), and decision.(Use α = 0.05).(Given: Sxx= 803,667,7024 and  = $43,627.700.)
A) CV = 1.8331; TS = 0.1415; fail to reject H₀ 
B) CV = 1.8595; TS = 0.02611; fail to reject H₀ 
C) CV = 1.8331; TS = 0.2986; fail to reject H₀ 
D) CV = 1.8595; TS = 0.3589; fail to reject H₀

Ten Used Cars from a Rental Fleet Are Randomly Selected