Using the z-distribution, as we have the standard deviation for the population, it is found that the correct decision is given by:
Reject the null hypothesis. There is enough evidence to oppose the company's claim.
At the null hypothesis, it is tested if the mean is of 2.7 years, that is:
[tex]H_0: \mu = 2.7[/tex]
At the alternative hypothesis, it is tested if the mean is different of 2.7 years, hence:
[tex]H_1: \mu \neq 2.7[/tex]
The test statistic is given by:
[tex]z = \frac{\overline{x} - \mu}{\frac{\sigma}{\sqrt{n}}}[/tex]
The parameters are:
In this problem, the values of the parameters are given by:
[tex]\overline{x} = 3.1, \mu = 2.7, \sigma = 0.85, n = 25[/tex]
Hence, the value of the test statistic is given by:
[tex]z = \frac{\overline{x} - \mu}{\frac{\sigma}{\sqrt{n}}}[/tex]
[tex]z = \frac{3.1 - 2.7}{\frac{0.85}{\sqrt{25}}}[/tex]
[tex]z = 2.35[/tex]
Considering a two-tailed test, as we are testing if the mean is different of a value, with a significance level of 0.05, the critical value is of [tex]|z^{\ast}| = 1.96[/tex].
Since the absolute value of the test statistic is greater than the critical value, the correct decision is:
Reject the null hypothesis. There is enough evidence to oppose the company's claim.
More can be learned about the z-distribution at https://brainly.com/question/16313918