Spring2015-Exam1-Sample Exam

# Spring2015-Exam1-Sample Exam - Question 1 Fairfield...

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Question 1 Fairfield Automotive is the local dealership selling Honda automobiles. It recently stated in an advertisement that Honda owners average more than 85,000 miles before trading in or selling their cars. To test this, an independent agency selected a simple random sample of 100 Honda owners who have either traded or sold their Hondas and determined the number of miles on the car when the owner parted with the car. The sample mean is 86,200 miles and sample standard deviation is 12,000 miles. It plans to test Fairfield’s claim at the alpha=5%. 1) State the appropriate null and alternative. 2) Using critical value approach, what conclusion should be reached about the claim?
Question 2 According to government lending institution Sallie Mae, students graduating from college have an average credit card debt of \$4,100. A random sample of 50 graduating seniors was selected, and their average credit card debt found to be \$4,360. Assume the standard deviation of the population is \$1,200. Using alpha=5%, answer the following questions: 1) State the appropriate null and alternative.

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