Name: Okoli-Onumazi Chinecherem Joseph

Matric: 55274342

Submission Deadline: 18-06-2022 (11:59 PM CET)

Assignment # 1
Q1: Many drivers of cars that can run on regular gas actually buy premium in the belief that they will
get better gas mileage. To test that belief, we use 10 cars n a company fleet in which all the cars run
on regular gas. Each car is filled first with either regular or premium gasoline, decided by a coin toss,
and the mileage for that tank-full is recorded. Then the mileage is recorded again for the same cars
for a tank-full of the other kind of gasoline. We don’t let the drivers know about this experiment.
Here are the results in miles per gallon:

(20 marks)

Regular Premium
16 19
20 22
21 24
22 24
23 25
22 25
27 26
25 26
27 28
28 32

Is there evidence that cars get significantly better fuel economy with premium gasoline? Use 0.05
level of significance and a test.

a) Write an appropriate hypothesis test for this situation and state the testing procedure
appropriate to this circumstance.

The appropriate hypothesis test to use here is the Paired Sample T-Test for finding the mean
difference between these samples. The Paired Sample T-Test is used because of the same group of
cases but different variables. We are analysing the same cars, but on different situations therefore
we use the Paired Sample T-Test.

If calculated t-value > critical t-value, we REJECT the NULL HYPOTHESIS.

Hypotheses:

μ0 → regular gasoline

μ → premium

H0 (Null Hypothesis) → μ0 = μ → the mean difference in mileage between

regular and premium gasoline is 0

H1 (Alternative Hypothesis) → μ0<μ → the mean difference in mileage

between regular and premium gasoline is less than 0 (premium gasoline mean is better than
regular gasoline mean)

b) Compute the necessary summary statistics for the test in part (a).

𝑥 𝑑𝑖𝑓𝑓 −0 𝑆𝑑𝑖𝑓𝑓
𝑡= 𝑆 𝑥=
𝑆𝑥 √𝑛
𝑆 𝑑𝑖𝑓𝑓 =1.414

𝑥 𝑑𝑖𝑓𝑓 =− 2

𝑛=10
c) Perform the t-test and report the p-value.

Calculated t value = -4.472

Degree of freedom (df) = n – 1 = 9

P-value = 7.75 ×10− 4

The calculated t-value (absolute value) is greater than the critical t-value (1.833).

d) Interpret your results in conclusion

Since the calculated t-value is greater than the critical t-value and the p-value is smaller
than the alpha value, the Null Hypothesis should be rejected. There is a noticeable mean
difference between the mileage of the regular and premium gas. The premium gas is better than
the regular gas

Manually
Excel:
Step 1: Add the information

Step 2: Click on “Data” and then “Data Analysis”

Step 3: Select Paired Two Samples for Means

Step 4: Add the range of values and alpha value

Step 5: See the results

Using IBM SPSS:

Step 1: Add the data

Step 2: Change type from String to Numeric and the measure from Nominal to Scale

Step 3: Select Analyze, then select Compare Means and then select the Paired Samples
T test

Step 4: Add each variable

Step 5: See the results

Q2: The distribution of scores of students taking the LSATs is claimed to have a mean of 521.
We take a sample of 100 incoming Harvard Law School freshman LSAT scores and find a
mean of 589 and a standard deviation of 37. Since Harvard is an Ivy League school, they
think their freshmen are smarter than average law students. Test this theory by applying
suitable hypothesis test (that Harvard students score higher than average on the LSATs) at
the 0.05 significance level.

(10 Marks)