Question

stated that the mean time for a Chrysler Concorde to go from 0 to 60 miles per hour was 8.7 seconds. (b) The town of Leadville, Colorado, has an elevation over 10,000 feet. Suppose you wanted to test the claim that the average time to accelerate from 0 to 60 miles per hour is longer in Leadville (because of less oxygen). What would you use for the alternate hypothesis? (c) Suppose you made an engine modification and you think the average time to accelerate from 0 to 60 miles per hour is reduced. What would you use for the alternate hypothesis? (d) For each of the tests in parts (b) and (c), would the -value area be on the left, on the right, or on both sides of the mean? ≈ 17.1. Generally speaking, a low P/E ratio indicates a "value" or bargain stock. Suppose a recent copy of a magazine indicated that the P/E ratio of a certain stock index is = 18. Let be a random variable representing the P/E ratio of all large U.S. bank stocks. We assume that has a normal distribution and = 4.2. Do these data indicate that the P/E ratio of all U.S. bank stocks is less than 18? Use = 0.01. (a) What is the level of significance? State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test? : = 18; :   < 18; left-tailed : ≠ 18; :   = 18; two-tailed      : = 18; :   > 18; right-tailed : = 18; :   ≠ 18; two-tailed (b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution. The standard normal, since we assume that has a normal distribution with known .The Student's , since is large with unknown .     The Student's , since we assume that has a normal distribution with known .The standard normal, since we assume that has a normal distribution with unknown . What is the value of the sample test statistic? (Round your answer to two decimal places.) (c) Find (or estimate) the -value. (Round your answer to four decimal places.) Sketch the sampling distribution and show the area corresponding to the -value. (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level ? At the = 0.01 level, we reject the null hypothesis and conclude the data are statistically significant.At the = 0.01 level, we reject the null hypothesis and conclude the data are not statistically significant.     At the = 0.01 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the = 0.01 level, we fail to reject the null hypothesis and conclude the data are not statistically significant. (e) State your conclusion in the context of the application.