Rocinante 36 Marengo 32

Top Top
Mileage speed Mileage speed
Car No. (km/ltr) (km/hr) Car No. (km/ltr) (km/hr)
1 21.2 151.9 1 15.04 211.3
2 21.79 147.6 2 15.41 207
3 21.87 145.6 3 15.43 206.2
4 22.71 136.1 4 15.92 213.4
5 22.52 139.7 5 15.2 204.2
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

9 19.95 136.4 9 14.79 208.5

10 20.65 146.6 10 14.81 214.2
11 22.86 139.9 11 15.61 215.8
12 21.12 136.6 12 15.76 215.8
13 22.8 148.5 13 14.97 215.2
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
18 22.72 135.1 18 15.93 216.4
19 20.54 138.8 19 14.54 205.8
20 21.14 132 20 14.76 209
Roccinate Mileage Roccinate

Sample size 20 Sample size

Sample standard deviation 0.927290762325786 Sample standard deviation
Hypothesized mean 22 Hypothesized mean
Sample mean 21.620 Sample mean
Std error of mean 0.207 Std error of mean
Degrees of freedom 19 Degrees of freedom
t-test statistic -1.835 t-test statistic
p-value 0.08221 p-value

Marengo Mileage Marengo

Sample size 20 Sample size
Sample standard deviation 0.458802503090497 Sample standard deviation
Hypothesized mean 15 Hypothesized mean
Sample mean 15.161 Sample mean
Std error of mean 0.103 Std error of mean
Degrees of freedom 19 Degrees of freedom
t-test statistic 1.564 t-test statistic
p-value 0.1343 p-value
Topspeed

20
5.39815758043037
140
140.970
1.207
19
0.804
0.4313

Topspeed
20
5.14633236801756
210
211.050
1.151
19
0.912
0.3732
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Step 1 For Rocinante36 For Marengo32

State the null and Alternate Hypothesis Mileage(km/litre) Mileage(km/litre) n<30 t-Test
H0 µ = 22 km/litre H0 µ = 15 km/litre
H1 µ ≠ 22 km/litre H1 µ ≠ 15 km/litre
Top Speed(km/hr) Top Speed(km/hr)
H0 µ = 140 km/hr H0 µ = 210 km/hr
H1 µ ≠ 140 km/hr H1 µ ≠ 210 km/hr
Step 2
Level of significance 5% level of significance 0.05

Step 3 t-Test t-Test

Decide test to be used (z/t ) Roccinate Mileage Roccinate Topspeed
Calculate test statistics Calculate p Sample size 20 Sample size 20
values Sample standard deviation 0.92729 Sample standard deviation 5.39815758043037

Hypothesized mean 22 Hypothesized mean 140

http://courses.atlas.illinois.edu/spring2016/STAT/
Sample mean 21.6195 Sample mean 140.970
Std error of mean 0.207 Std error of mean 1.207
Degrees of freedom 19 Degrees of freedom 19
t-test statistic -1.83507 t-test statistic 0.804
p-value 0.08221 p-value 0.4313

Marengo Mileage Marengo Topspeed

Sample size 20 Sample size 20
Sample standard deviation 0.458802503090497 Sample standard deviation 5.14633236801756
Hypothesized mean 15 Hypothesized mean 210
Sample mean 15.161 Sample mean 211.050
Std error of mean 0.103 Std error of mean 1.151
Degrees of freedom 19 Degrees of freedom 19
t-test statistic 1.564 t-test statistic 0.912
p-value 0.1343 p-value 0.3732

Step 4 Interpretation
Rule Rocinante Fail to Reject Null Hypothesis Marengo Fail to Reject Null
Hypothesis If p≤.05, Reject Ho
if p>.05, Fail to reject Ho

Rocinante H0: µ = 22 km/litre Marengo H0: µ = 15 km/litre

Step 5 H0: µ = 140 km/hr H0: µ = 210 km/hr
Types of Error Interpretation Interpretation
Type 1 Rej H0 when H0 is true Mileage is 22 km/litre, Reject Mileage is 15 km/litre, Reject
Top Speed is 140 km/hr, Reject Top Speed is 210 km/hr, Reject
Mileage is not 22 km/litre, Fail Mileage is 15 km/litre, Fail to
Type 2 Fail to rej Ho when H0 is false to Reject Reject
Top Speed is not 140 km/hr, Fail Top Speed is 210 km/hr, Fail to
to Reject Reject

Business decision? Business decision?

we might ask the chief engineer we might ask the chief engineer
to check again and it is an to check again and it is an
indication that more investment indication that more investment
is needed in the design to is needed in the design to
improve their performance. improve their performance.
Type 1 Type 1
Type 2 The engineer revises the The engineer revises the
specifications Type 2 specifications
Quality Check,Spend
resources on R&D

Launch, Customers get

angry , They might sue,
Reputation of company will
get affected, Need to
Refund to customers

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Which model is likely to bring more profit overall?

The predicted sales and the profit margin per unit is needed
to calculate the overall profit that a model is likely to bring

Per unit profit margin = Per unit price - Per unit cost

Perform multiple linear regressions separately for each

brand to predict the sales of both the models using price,
mileage and top speed based on the historical sales data.

Two equations containing sales as the dependent variable

and price, mileage and top speed as the independent
variables are expected after the multiple linear regressions
are performed

Now you have two regression equations, one for each brand. These
equations can help you predict the sales of each model. What should
you do next?

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Perform hypothesis tests on the desired specifications (mileage and top speed) of the new
and input the values into the regression equations only if they pass the tests.

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