(CO 5) A used car dealer says that the mean price of a three-year-old sport

utility vehicle in good condition is $18,000. A random sample of 20 such vehicles has a mean price of $18,450 and a standard deviation of $1860. At α=0.08, can the dealer’s claim be supported assuming the population is normally distributed?

Yes, since the test statistic of 1.08 is not in the rejection region defined by the critical value of 1.85, the null is not rejected. The claim is the null, so is supported

No, since the test statistic of 1.08 is in the rejection region defined by the critical value of 1.85, the null is rejected. The claim is the null, so is not supported

No, since the test statistic of 1.08 is close to the critical value of 1.24, the null is not rejected. The claim is the null, so is supported

Yes, since the test statistic of 1.08 is in the rejection region defined by the critical value of 1.46, the null is rejected. The claim is the null, so is supported

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