Amit, Balram and Chandok are Risk Managers, wanting to establish the claim of the company. The Make the following statements:
Amit: Since we have taken quite a number of cars and have found the average to be much less than 28 Kms/liter, I think the company is making a wrong claim. Though their car is much cheaper than the other alternatives in market, we should not buy their car.
Balram: Amit, though I agree with you, but I think you are missing some important parameters in making your hypothesis. Based on my calculation this error is just too much to expect (I would have accepted within the range of 3 standard errors). So I would also not buy this car.
Chandok: I would like to disagree. I reasonably expect (within 2 standard errors) that we could have selected such a sample if indeed the population mean is actually 28 kms/liter.
Who all are correct?