Question

In: Statistics and Probability

A company is trying to choose between three types of cars for its fleet: national, Japanese...

A company is trying to choose between three types of cars for its fleet: national, Japanese or European. Five cars of each type are ordered and after traveling 10,000 miles with them, the cost per mile traveled (cents) of each car is calculated.

Nationals: 18.0, 17.6, 17.4, 19.1, 16.9
Japanese: 15.1, 16.6, 16.1, 15.3, 15.4
Europeans: 19.3, 17.4, 17.1, 18.6, 16.1

1) Make the hypothesis test (6 steps). In step 1, Ho and H1, write them in a text (don't write Ho:
2) Take the Tukey test. What type of car do you recommend?

Solutions

Expert Solution

A B C D
count, ni = 5 5 5
mean , x̅ i = 17.800 15.70 17.70
std. dev., si = 0.828 0.628 1.263
sample variances, si^2 = 0.685 0.395 1.595
total sum 89 78.5 88.5 256 (grand sum)
grand mean , x̅̅ = Σni*x̅i/Σni =   17.07
square of deviation of sample mean from grand mean,( x̅ - x̅̅)² 0.538 1.868 0.401
TOTAL
SS(between)= SSB = Σn( x̅ - x̅̅)² = 2.689 9.339 2.006 14.03333
SS(within ) = SSW = Σ(n-1)s² = 2.740 1.580 6.380 10.7000

no. of treatment , k =   3
df between = k-1 =    2
N = Σn =   15
df within = N-k =   12
  
mean square between groups , MSB = SSB/k-1 =    7.0167
  
mean square within groups , MSW = SSW/N-k =    0.8917
  
F-stat = MSB/MSW =    7.8692

anova table
SS df MS F p-value F-critical
Between: 14.03 2 7.02 7.87 0.0066 3.89
Within: 10.70 12 0.89
Total: 24.73 14
α = 0.05
conclusion : p-value<α , reject null hypothesis    

................

TUKEY:

Level of significance 0.05
no. of treatments,k 3
DF error =N-k= 12
MSE 0.892
q-statistic value(α,k,N-k) 3.7700
critical value = q*√(MSE/n)
confidence interval
population mean difference critical value lower limit upper limit result
µ1-µ2 2.10 1.59 0.51 3.69 means are different
µ1-µ3 0.10 1.59 -1.49 1.69 means are not different
µ2-µ3 -2.00 1.59 -3.59 -0.41 means are different

...............

JAPANESE CAR IS RECOMMENDED

..................

THANKS

revert back for doubt

please upvote


Related Solutions

Zulu car rental corporation is trying to determine whether to add 25 cars to its fleet....
Zulu car rental corporation is trying to determine whether to add 25 cars to its fleet. The company fully depreciates all its rental cars over 5 years using the straight line method. The new cars are expected to generate $140,000 per year in earnings before taxes and depreciation for 5 years. The company is entirely financed by equity and has a 35% tax rate. The required return on the company’s unlevered equity is 13% and the new fleet will not...
A company with a large fleet of cars sets a goal of attaining a fleet average...
A company with a large fleet of cars sets a goal of attaining a fleet average of at least 26 miles per gallon of gasoline. To see if that goal is being met, they check the gasoline usage for 50 company trips chosen at random, finding a mean of 25.02 mpg and a standard deviation of 4.83 mpg. a) Is this a strong evidence that they have failed to attain their fuel economy goal? Assume significance level of 0.1. b)...
1.UC Cars operates a fleet of cars for hire in Singapore. In planning its operations for...
1.UC Cars operates a fleet of cars for hire in Singapore. In planning its operations for February, UC Cars estimated that it would carry fare-paying passengers for 40,000 km at an average price of $2.00 per km. Past experience suggested that the total mileage (km run) should amount to 250% of the fare-paid km. At the beginning of October, UC Cars employed ten drivers and decided that this number would be adequate for the month ahead. The following cost estimates...
A city in Ohio is considering replacing its fleet of gasoline powered cars with electric cars....
A city in Ohio is considering replacing its fleet of gasoline powered cars with electric cars. The manufacturer of the electric cars claims that this municipality will experience significant cost savings over the life of the fleet if it chooses to pursue this conversion. If the manufacturer is correct, the city will save about $1.5 million. If the new technology employed within the electric cars is faulty as some critics suggest, it will cost the city $675,000. A third possibility...
1. A company with a fleet of 1500 cars found that the emissions systems of 17...
1. A company with a fleet of 1500 cars found that the emissions systems of 17 out of the 53 randomly selected cars from their fleet failed to meet pollution control guidelines. If a significant number of vehicles are found to be out of compliance, the whole fleet will need to be inspected and brought up to current regulations. Is there strong evidence that more than 20% of the fleet might be out of compliance? Use a 1% level of...
Your company is considering the purchase of a fleet of cars for $200,000. It can borrow...
Your company is considering the purchase of a fleet of cars for $200,000. It can borrow at 6%. The cars will be used for four years. At the end of four years they will be worthless. You call a leasing agent and find that the cars can be leased for $55,000 per year. The corporate tax rate is 34% and the cars belong in CCA class 10 (a 30% class), what is the net advantage to leasing? a. $1,802 b....
Your company is considering the purchase of a fleet of cars for $200,000. It can borrow...
Your company is considering the purchase of a fleet of cars for $200,000. It can borrow at 6%. The cars will be used for four years. At the end of four years, they will be worthless. You call a leasing agent and find that the cars can be leased for $55,000 per year. The corporate tax rate is 34% and the cars belong in CCA class 10 (a 30% class), what is the net advantage to leasing? Select one: a....
Your company is considering the purchase of a fleet of cars for $195,000. It can borrow...
Your company is considering the purchase of a fleet of cars for $195,000. It can borrow at 8.5%. The cars will be used for four years. At the end of four years they will be worthless. You call a leasing agent and find that the cars can be leased for $55,000 per year. The corporate tax rate is 34% and the cars belong in CCA class 10 (a 30% class), what is the net advantage to leasing? A) $6,594 B)...
MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its...
MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is implementing an ABC system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are kilometers for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure. The following...
MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its...
MobileCash Corporation operates a fleet of armoured cars that make scheduled pickups and deliveries for its customers. The company is implementing an ABC system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are kilometres for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure. The following...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT