Question

A car manufacturer asserts that with the new collapsible bumper system, the mean body repair cost for the damage sustained in a collision impact of 15 miles per hour does not exceed $ 400. To test the validity of this claim, 6 cars are crashed into a barrier at 15 miles per hour and their repair costs recorded. The mean and standard deviation are found to be $ 458 and $ 48, respectively. At the = .05 significance level, does the test data contradict the manufacturer’s claim that the repair cost does not exceed $ 400? You may assume the sample was taken from a normal population.

          A car manufacturer asserts that with the new collapsible bumper system, the mean body repair cost for the damage sustained in a collision impact of 15 miles per hour does not exceed $ 400. To test the validity of this claim, 6 cars are crashed into a barrier at 15 miles per hour and their repair costs recorded. The mean and standard deviation are found to be $ 458 and $ 48, respectively. At the = .05 significance level, does the test data contradict the manufacturer’s claim that the repair cost does not exceed $ 400? You may assume the sample was taken from a normal population.

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