Answer
Step 1:$H_0$: µ $\geq$ 264 gallons , $H_1$: µ < 264 gallons
Step 2:
$\bar{X}$ =262.3 feet, µ =264 feet, σ = 3 feet, n = 20
Test value = z = $\frac{\bar{X}- µ }{σ / \sqrt n}$
= $\frac{262.3- 264}{3 / \sqrt 20}$
=-2.53
Step 3: P-value = 0.0057, since it is a two-tailed test,
0.0057(2) = 0.0114,
Step 4:Since P-value is larger than α, 0.01 , the decision is not to reject the null hypothesis
Step 5:There is enough evidence to reject the claim that the average stopping distance of the company’s buses is actually less than 264 feet.
