Question 7:

A company with a large fleet of cars hopes to keep gasoline costs down and sets a goal of attaining a fleet average of at least 26 miles per gallon. To see if the goal is being met, the company checks the gasoline usage for 50 company trips chosen at random, finding a mean of 25.05 mpg and a standard deviation of 4.83 mpg. Is this strong evidence that the company has failed to attain its fuel economy goal?

a) Write appropriate hypotheses.

b) Are the necessary assumptions to perform inference satisfied?

c) Test the hypothesis and find the P-value

d) Explain what the P-value means in this context.

e) State an appropriate conclusion.