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A Company Makes a Device That Can Be Fitted to Automobile

Question 177

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A company makes a device that can be fitted to automobile engines to improve the mileage. The company claims that if the device is installed, owners will observe a mean increase of more than 3.0 mpg. Assuming that the population standard deviation of increase is known to be 0.75 mpg, and a sample of size 64 cars is selected with an = 3.25 mpg, use the p-value approach to test the null hypothesis using a significance level of 0.05.

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