BUS308 Week 3 5

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Hypothesis Test

WEEK4- Discussion 1

Give an example of a hypothesis test you could perform at work or at home. State what the Null and the Alternative hypotheses would be in your test. Explain how you would settle on a reasonable level of significance for your scenario. Also explain what the type I and II errors would be if you reached the incorrect conclusion in your test.

The manufacturer of steel-belted radial truck tire claims that the mean mileage of the tire can be driven before the tread wears out is 45,000 miles. The standard deviation of the mileage is 2,000 miles. Suppose your company bought 47 tires and found that the mean mileage of the trucks is 60,100 miles. Do you experience different from the manufacture's claim?

Null hypothesis, H0: The mean mileage is 60100 miles, that...

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