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Q1

Ans:

Rocinante 36
Null Hypothesis (H0) - Rocinante 36 is performing as per the specification given
H0: Mileage = 22 km/ltr and Top Speed = 140 km/hour

Alternate Hypothesis(H1) - Rocinante 36 is not performing as per the specification given


H1: Mileage <> 22 km/ltr and Top Speed <> 140 km/hour

Marengo 32
Null Hypothesis (H0) - Marengo 32 is performing as per the specification given H0: Mileage = 15
km/l and Top Speed = 210 km/hour
Alternate Hypothesis(H1) - Marengo 32 is not performing as per the specification given H1:
Mileage <> 15 km/l and Top Speed <> 210 km/hour

Q2
Ans:

Rocinante 36
As the samples size we have is less than 30, we will be going with the t-test with significant
value (alpha) as 0.05.

Rocinante 36
Mileage (km/ltr) Top speed (km/hr)
Mileage Top speed
(km/ltr) (km/hr)
Mean 21.6195 Mean 140.97
Variance 0.859868158 Variance 29.14010526
Observations 20 Observations 20
Hypothesized Mean 22 Hypothesized Mean 140
df 19 df 19
t Stat -1.835074607 t Stat 0.803602305
P(T<=t) two-tail 0.082200247 P(T<=t) two-tail 0.431566151
t Critical two-tail 2.093024054 t Critical two-tail 2.093024054

So, from this we are failed to reject the Null Hypothesis as the P value of both is greater than
0.05.
Marengo 32
As the samples size we have is less than 30, we will be going with the t-test with significant
value (alpha) as 0.05.

Marengo 32
Mileage (km/ltr) Top speed (km/hr)
Mileage Top speed
(km/ltr) (km/hr)
Mean 15.1605 Mean 211.05
Variance 0.210499737 Variance 26.48473684
Observations 20 Observations 20
Hypothesized Mean 15 Hypothesized Mean 210
df 19 df 19
t Stat 1.564459252 t Stat 0.912444517
P(T<=t) two-tail 0.134212987 P(T<=t) two-tail 0.372967671
t Critical two-tail 2.093024054 t Critical two-tail 2.093024054

So, from this we are failed to reject the Null Hypothesis as the P value of both is greater than
0.05.

Q3
Ans: Type 2 error will be more expensive as they must give back the money to the customer
since the promised specification was not achieved and they must again reengineer the cars
which requires funding and also, they will lose customer.

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