A fire insurance company thought that the mean distance from a home to the nearest fire department in a suburb of Chicago was at least 4.7 miles. It set its
fire insurance rates accordingly. Members of the community set out to show that
the mean distance was less than 4.7 miles. This, they thought, would convince
the insurance company to lower its rates. They randomly identified 64 homes and
measured the distance to the nearest fire department from each. The resulting
sample mean was 4.4 miles. If σ = 2.4 miles, does the sample show sufficient
evidence to support the community’s claim at the α = 0.05 level of significance?
1) Conduct a hypothesis test using the classical approach.