COMPANY OVERVIEW

Scania is a world leading provider of transport solutions. Together with our partners
and customers we are driving the shift towards a sustainable transport system.

Scania is a Sweden based Company, operating worldwide. In 2017, we delivered 82,472

trucks, 8,305 buses as well as 8,521 industrial and marine engines to our customers. Scania’s
net sales rose to a record high SEK 119.7 billion, an increase of 15 percent compared to the
previous year.

Founded in 1891, Scania operates in more than 100 countries and employs around 49,300
people. Research and development are concentrated in Sweden, with branches in Brazil and
India. Production takes place in Europe, Latin America and Asia, with regional production
centres in Africa, Asia and Eurasia.

Scania is part of TRATON GROUP. Under this umbrella the brands Scania, MAN and
Volkswagen Caminhoes e Ônibus work closely together with the aim to turn TRATON and its
brands into a Global Champion.
OBJECTIVE
 We are Interested to know, mean Net Sales of Buses is less than the Net Sales of
Trucks of Scania.

ABOUT HYPOTHESIS TESTING & POPULATION

 Hypothesis testing is a statistical method that is used in making statistical decisions
using experimental data. Hypothesis Testing is basically an assumption that we
make about the population parameter.

 Null Hypothesis : Null hypothesis is a statistical hypothesis that assumes that the
observation is due to a chance factor. Null hypothesis is denoted by; H0: μ1 = μ2,
which shows that there is no difference between the two population means.

 Alternative Hypothesis : Contrary to the null hypothesis, the alternative

hypothesis shows that observations are the result of a real effect.
HYPOTHESIS TESTING OF SCANIA’S NET SALES BY PRODUCT

SCANIA
Net Sales By Product ( Amt in SEK in Millions)

YEAR BUSES TRUCKS

2017 SEK 10,480.00 SEK 75,226.00

2016 SEK 10,867.00 SEK 65,615.00
2015 SEK 8,994.00 SEK 61,250.00
2014 SEK 7,412.00 SEK 59,587.00
2013 SEK 6,610.00 SEK 57,502.00
2012 SEK 7,196.00 SEK 49,580.00
2011 SEK 8,206.00 SEK 57,632.00
2010 SEK 7,713.00 SEK 47,580.00
2009 SEK 8,837.00 SEK 32,832.00
2008 SEK 8,186.00 SEK 55,566.00
2007 SEK 7,429.00 SEK 52,599.00
2006 SEK 6,766.00 SEK 43,021.00
2005 SEK 6,256.00 SEK 37,778.00
2004 SEK 5,504.00 SEK 33,407.00
2003 SEK 5,115.00 SEK 29,537.00
2002 SEK 3,991.00 SEK 27,184.00
2001 SEK 4,701.00 SEK 29,139.00
2000 SEK 3,704.00 SEK 31,101.00
1999 SEK 3,601.00 SEK 27,888.00
1998 SEK 3,548.00 SEK 27,030.00
1997 SEK 3,251.00 SEK 24,005.00
1996 SEK 2,852.00 SEK 20,636.00
1995 SEK 2,955.00 SEK 22,296.00
1994 SEK 2,687.00 SEK 30,835.00
HYPOTHESIS
 Ho:µ1-µ2=0
 H1:µ1-µ2<0

Where, µ1 = Population mean of Net sales of Buses

µ2 = Population mean of Net sales of Trucks

LEVEL OF SIGNIFICANCE (ALPHA α)

 Value of α = 0.05
 Refers to the degree of significance in which we accept or reject the
null-hypothesis.

ASSUMPTION
 Population variance are equal
 Net Sales of both Buses & Trucks are Independent Samples
 Net Sales in the population are normally Distributed

STATISTICAL ANALYSIS
 We carried out a two sampled t test in Excel & the output is given below :

t-Test: Two-Sample Assuming Equal Variances

BUSES TRUCKS
Mean 6119.208333 41617.75
Variance 6130711.998 250427006.3
Observations 24 24
Pooled Variance 128278859.1
Hypothesized Mean Difference 0
df 46
t Stat -10.85734381
P(T<=t) one-tail 1.39465E-14
t Critical one-tail 1.678660414
P(T<=t) two-tail 2.7893E-14
t Critical two-tail 2.012895599
REJECTION RULE
 Reject Ho, if t ≤ -tα,df
 t (cal) -10.85 < t (tab) 1.67

BUSINESS IMPLICATIONS
 Reject Ho
 Net sales of Buses is less than Trucks of Scania