Rocinante 36 Marengo 32

Top Top
Mileage speed Mileage speed
Car No. (km/ltr) (km/hr) Car No. (km/ltr) (km/hr) Dummy Step 1
1 21.2 151.9 1 15.04 211.3 0 State the null and Alternate Hypothesis
2 21.79 147.6 2 15.41 207 0
3 21.87 145.6 3 15.43 206.2
4 22.71 136.1 4 15.92 213.4 Step 2
5 22.52 139.7 5 15.2 204.2 Level of significance
6 21.41 146.1 6 15.22 208.7
7 22.71 139.6 7 14.6 200
8 21.71 143 8 14.41 210.9 Step 3
9 19.95 136.4 9 14.79 208.5 Decide test to be used (z/t )
10 20.65 146.6 10 14.81 214.2 Calculate test statistics
11 22.86 139.9 11 15.61 215.8 Calculate p values
12 21.12 136.6 12 15.76 215.8
13 22.8 148.5 13 14.97 215.2 n<30,t
14 20.89 143.4 14 14.71 218.7
15 22.49 134.2 15 15.55 208
16 20.94 140.5 16 15.19 212.2
17 20.37 137.8 17 15.36 219.7 Step 4
18 22.72 135.1 18 15.93 216.4 Rule If p≤.05, Reject Ho
19 20.54 138.8 19 14.54 205.8 if p>.05, Fail to reject Ho
20 21.14 132 20 14.76 209
Rocinante 36
Mileage if 0.08220>.05, Fail to reject Ho
Top Speed if 0.4315>.05, Fail to reject Ho

Marengo
Mileage if 0.1342>.05, Fail to reject Ho
Top Speed if 0.3729>.05, Fail to reject Ho

Step 5 Rocinante36
Types of Error
Type 1 Reject H0 when H0 is true
Type 2 Fail to reject Ho when H0 is false

Business decision?

In case of type 2 error, Random motors will end up its selling customers veh
 Method
ternate Hypothesis Rocinante 36 Marengo
H0: Mean Mileage= 22KMPL H0: Mean Top Speed= 140km/hr H0: Mean Mileage= 15 KMPL
Ha: Mean Mileage ≠ 22KMPL Ha:Mean Top Speed ≠ 140km/hr Ha:Mean Mileage ≠ 15KMPL

5% level of significance

Rocinante 36
Hypothesis test
Sample size
Sample standard deviation
Hypothesized mean
Sample mean
Std error of mean (SE)
Degrees of freedom
t-test statistic
p-value

Fail to reject Ho Interpretation

t-Test: Two-Sample Assuming
if p>.05, Fail to reject Ho
Mileage (km/ltr)
Mean
Variance
if p>.05, Fail to reject Ho Observatio
Hypothesiz
df
t Stat
P(T<=t) one
H0: Mean Mileage= 22KMPL t Critical o
Interpretation P(T<=t) two
Type 2 error: where in we fail to reject null hypothesis while null hypothesis is not true t Critical t

e.g. mileage is not actually 22, it is less than 22, but we fail to reject the

ts selling customers vehicles promising wrong specifications which will result in complaints-> bad reputation and losses to cover refund cla
 H0: Mean Mileage= 15 KMPL H0: Mean Top Speed = 210Km/hr
Ha:Mean Mileage ≠ 15KMPL Ha: Mean Top Speed≠ 210Km/hr

T-test

Marengo32
Mileage Top Speed Hypothesis test Mileage Top Speed
20 20 Sample size 20 20
0.9272907623 5.3981575804 Sample standard deviation 0.458802503 5.1463324
22 140 Hypothesized mean 15 210
21.6195 140.97 Sample mean 15.1605 211.05
0.2073485179 1.2070647303 Std error of mean (SE) 0.102 1.151
19 19 Degrees of freedom 19 19
-1.835074607 0.8036023054 t-test statistic 1.5644592519 0.91244452
0.0822002471 0.4315661507 p-value 0.1342129868 0.37296767

t-Test: Two-Sample Assuming Unequal Variances t-Test: Two-Sample Assuming Unequal Variances
Rocinante 36
Mileage (km/ltr) Dummy Top speed (km/hr) Dummy
21.6195 0 Mean 140.97 0
0.8598681579 0 Variance 29.140105263 0
20 2 Observations 20 2
22 Hypothesized M 140
19 df 19
-1.835074607 t Stat 0.8036023054
0.0411001235 P(T<=t) one-tai0.2157830754
1.7291328115 t Critical one-ta1.7291328115
0.0822002471 P(T<=t) two-tai0.4315661507
2.0930240544 t Critical two-ta2.0930240544

n and losses to cover refund claims.

t-Test: Two-Sample Assuming Unequal Variances t-Test: Two-Sample Assuming Unequal Vari
Marengo
Mileage (km/ltr)Dummy Top speed (km/hr)
Dummy
Mean 15.1605 0 Mean 211.05 0
Variance 0.2104997 0 Variance 26.484737 0
Observatio 20 2 Observatio 20 2
Hypothesiz 15 Hypothesiz 210
df 19 df 19
t Stat 1.5644593 t Stat 0.9124445
P(T<=t) one-0.0671065 P(T<=t) one-0.1864838
t Critical on 1.7291328 t Critical on 1.7291328
P(T<=t) two- 0.134213 P(T<=t) two-0.3729677
t Critical tw 2.0930241 t Critical tw 2.0930241
Assuming Unequal Variances