The manufacturer of 'Road King' tyres claim that their tyres last an average of 70,000km or more. The Consumer Board suspects that this claim may be false (they have received some complaints) and decide to test the manufacturer's claim. The Consumer Board took a sample of size 500 from the population. They ran the tyres until they fail to meet the requirements for tread depth. The mean and standard deviation for the sample are respectively 69,914 and 2,131. The correct conclusion at a 1% significance level and test statistic of -0.90 is: A. Fail to reject null hypothesis. Tyres last 70,000km or more. B. Reject the null hypothesis. Tyres last 70,000km or more. C. Reject the null hypothesis. Tyres last 69,914km. D. Fail to reject the null hypothesis. Tyres last more than 70,000km.
The manufacturer of 'Road King' tyres claim that their tyres last an average of 70,000km or more. The Consumer Board suspects that this claim may be false (they have received some complaints) and decide to test the manufacturer's claim. The Consumer Board took a sample of size 500 from the population. They ran the tyres until they fail to meet the requirements for tread depth. The mean and standard deviation for the sample are respectively 69,914 and 2,131. The correct conclusion at a 1% significance level and test statistic of -0.90 is:
A. Fail to reject null hypothesis. Tyres last 70,000km or more.
B. Reject the null hypothesis. Tyres last 70,000km or more.
C. Reject the null hypothesis. Tyres last 69,914km.
D. Fail to reject the null hypothesis. Tyres last more than 70,000km.
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