A major automobile manufacturer has developed a new model car that it claims will average 25 mpg on the highway. A random sample of fifty of these cars was tested and they averaged 24 mpg. This means that the claim made by the auto company is incorrect.

Question

Quizplus · Accepted Answer

A single sample average of 24 mpg does not conclusively prove the company's claim of 25 mpg average is incorrect, as variability in sample results and measurement error could account for the difference.

A Major Automobile Manufacturer Has Developed a New Model Car