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Question 989:

The Ministry of Environment, Science and Technology has one of its administrative centers located out of town and the majority of employees drive to work. As part of the Ministry’s ‘green’ policy, various efforts have been made to encourage employees to car-share: that is, for several people to travel to work in one car rather than each use his or her own. The Ministry wants to assess the impact of these measures on car-sharing. Last year, in a comprehensive exercise, the Ministry found that the number of cars parked in the staff car park each day averaged at least 220. This year, based on a sample of 75 observations, it has calculated that the mean number of cars parked in the staff car park is 205, with a standard deviation of 32. Using alpha of five percent,
i. State the null and alternative hypotheses
ii. Determine the test statistic
iii. Find the critical value and the p-value
iv. Based on the data and your analysis in (ii) and (iii), would you conclude whether employees should car-share at the 5% level of significance?

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