Answers
The manager should carry out a 1-tail test as he is only interested if the average life span of the tyres is
more than and not interested if the average life span of the tyres is less than
Let denote the population mean life span of the tyres in thousand miles, denote the random variable of the life span of the tyres, and and be the null and alternative hypothesis respectively.
Unbiased estimate of population mean
Unbiased estimate of population variance
Unbiased estimate of population variance
There is insufficient evidence at the level of significance to conclude whether mean life span of front tyres is more than miles
As we do not know the population distribution of the life span of front tyres, we will need a larger
sample size of at least to ensure that we can use the Central Limit Theorem to justify that the sample
mean life span of front tyres is normally distributed approximately.
Full solutions
(i)
The manager should carry out a 1-tail test as he is only interested if the average life span of the tyres is
more than and not interested if the average life span of the tyres is less than
Let denote the population mean life span of the tyres in thousand miles, denote the random variable of the life span of the tyres, and and be the null and alternative hypothesis respectively.
(ii)
(iii)
Under test statistic
approximately by CLT since is large
There is insufficient evidence at the level of significance to conclude whether
mean life span of front tyres is more than miles
(iv)
As we do not know the population distribution of the life span of front tyres, we will need a larger
sample size of at least to ensure that we can use the Central Limit Theorem to justify that the sample
mean life span of front tyres is normally distributed approximately.