Can we conclude, using a .05 level of significance,that the miles-per-gallon (mpg) performance of Model Ais greater than the miles-per-gallon performance of Model B? Model AModel BSample Size2428Sample Mean29.827.3Sample standard deviation2.561.81 What is the conclusion?Group of answer choicesRevise HoReject HoNo answer text provided.Do not Reject Ho
Question
Can we conclude, using a .05 level of significance,that the miles-per-gallon (mpg) performance of Model Ais greater than the miles-per-gallon performance of Model B? Model AModel BSample Size2428Sample Mean29.827.3Sample standard deviation2.561.81 What is the conclusion?Group of answer choicesRevise HoReject HoNo answer text provided.Do not Reject Ho
Solution
To answer this question, we need to perform a hypothesis test. Here are the steps:
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State the null hypothesis (Ho) and the alternative hypothesis (Ha). In this case, Ho: μA ≤ μB (the mean mpg of Model A is less than or equal to the mean mpg of Model B) and Ha: μA > μB (the mean mpg of Model A is greater than the mean mpg of Model B).
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Calculate the test statistic. We use the formula for the test statistic in a two-sample t-test:
t = [(mean1 - mean2) - (μ1 - μ2)] / sqrt[(s1^2/n1) + (s2^2/n2)]
where mean1 and mean2 are the sample means, μ1 and μ2 are the population means (which are 0 under the null hypothesis), s1 and s2 are the sample standard deviations, and n1 and n2 are the sample sizes.
Substituting the given values, we get:
t = [(29.8 - 27.3) - 0] / sqrt[(2.56^2/24) + (1.81^2/28)] = 2.5 / sqrt[0.2733 + 0.1164] = 2.5 / 0.661 = 3.78
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Determine the critical value for a .05 level of significance. For a one-tailed t-test with df = min(n1, n2) - 1 = min(24, 28) - 1 = 23 degrees of freedom, the critical value is approximately 1.714 (you can find this value in a t-distribution table).
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Compare the test statistic with the critical value. If the test statistic is greater than the critical value, we reject the null hypothesis. In this case, 3.78 > 1.714, so we reject Ho.
So, the conclusion is "Reject Ho", which means we have enough evidence at the .05 level of significance to conclude that the miles-per-gallon performance of Model A is greater than the miles-per-gallon performance of Model B.
Similar Questions
A popular car manufacturing brand claims that their car model Rex500 has an average highway mileage of 21.50 Km/L, you want to test whether this claim is statistically significant or not.You managed to get data from 45 cars of this model and found that the average highway mileage is 20.42 Km/L, with a standard deviation of 2.7 Km/LWith 99% confidence, will you be able to conclude that the average highway mileage is statistically lower than the claimed fuel economy?Use the appropriate test and select the correct option below:
A local car manufacturer manufactures small automobiles that averaged 50 miles per gallon of gasoline in highway driving.The company has developed a more efficient engine for its small cars and now advertises that its new small cars average more than 50 miles per gallon in highway driving. In a sample of 36 road-tested automobiles, it showed an average of 51.5 miles per gallon and a standard deviation of 6 miles per gallon.Test to determine whether or not the manufacturer's advertising campaign is legitimate at 0.05 level of significance and using the p-value approach, Group of answer choicesWith p-value of 0.0668, therefore, do not reject Ho. There is no sufficient evidence to conclude that the new cars average more than 50 mile per gallon.With p-value of 0.0068, therefore, reject Ho. There is sufficient evidence to conclude that the new cars average more than 50 miles per gallon.With p-value of 0.0724, therefore, do not reject Ho. There is no sufficient to conclude that the new cars average more than 50 miles per gallon.With p-value of 0.0008, therefore, reject Ho. There is sufficient evidence to conclude that the new cars average more than 50 miles per gallon.
A car manufacturer advertises that its new subcompact models get 47 miles per gallon (mpg). Let µ be the mean of the mileage distribution for these cars. You assume that the manufacturer will not underrate the car, but you suspect that the mileage might be overrated. State the null hypothesis and the alternate hypothesis for this case.a.H0: µ = 47mpg and H1: µ ≠ 47mpgb.H0: µ = 47mpg and H1: µ < 47mpgc.H0: µ = 47mpg and H1: µ > 47mpgd.H0: µ ≥ 47mpg and H1: µ < 47mpg
Based on the p-value, what is your conclusion (use .05 significance level)?
A significance test of H: B = 0 against the two-sided alternative H: B # 0, where B = the slope of the population least-squares regression line for predicting Ethereum price from Bitcoin price, was conducted at the 5% significance level. Which of the following gives the correct decision for the significance test and the possible error that could result from this decision? (A) Fail to reject the null hypothesis; Type I error (B) Fail to reject the null hypothesis; Type II error (C) Reject the null hypothesis; Type I error (D) Reject the null hypothesis; Type II error (E) Reject the null hypothesis; either Type I error or Type Il error is possible
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