Discuss the below:
Make a decision regarding the null hypothesis based on the sample information and interpret the results of the test, state whether we proved or disproved the null hypothesis and why the data proves this.
Q: A company needs to purchase company cars for their sales staff. They contacted their local Ford dealership and inquired as to the price of a 2007 Ford Explorer 4X4 XLT. The dealership stated that the average price (μ) of this vehicle in Maryland is $29,995. The company took a random sample of 20 (n) Ford dealerships in Maryland and found that the mean price was $30,474.8, with a standard deviation of $1972.592. If we assume that the cost of the automobile throughout Maryland is normally distributed, there should be enough evidence to conclude, with the 0.1 level of significance if the mean (μ) is less than $29,995.
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2007 Ford Explorer 4X4 XLT
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Company
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Price
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www.academyford.com
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27,595
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www.advantageford.com
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30,250
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www.appleford.com
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32,705
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www.bobbellford.com
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28,485
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www.crouseford.com
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31,295
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www.darcars.com
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30,075
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www.diehlsford.com
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30,505
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www.hagertownford.com
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30,820
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www.hillsford.com
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25,995
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www.hindersford.com
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32,830
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www.huntford.com
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31,875
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www.koonsford.com
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32,285
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www.norrisford.com
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32,580
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www.pittsvilleford.com
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28,915
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www.plazaford.com
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29,940
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www.prestonford.com
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31,720
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www.ramseyford.com
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30,265
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www.shafferford.com
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32,555
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www.towsonford.com
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31,580
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www.watertownford.com
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27,226
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