Question

In: Statistics and Probability

The following data represent the daily rental cost for a compact automobile charged by two car...

The following data represent the daily rental cost for a compact automobile charged by two car rental companies, Thrifty and Hertz, in 10 randomly selected major U.S. cities. Test whether Thrifty is less expensive than Hertz at the α = 0.1 level of significance.

City Thrifty Hertz
Chicago 21.81 18.99
Los Angeles 29.89 48.99
Houston 17.90 19.99
Orlando 27.98 35.99
Boston 24.61 25.60
Seattle 21.96 22.99
Pittsburgh 20.90 19.99
Phoenix 47.75 36.99
New Orleans 33.81 26.99
Minneapolis 33.49 20.99

Conditions:
In Minitab Express, enter the given data in two separate columns, use DATA -> Formula to calculate the differences di as d = Thrifty - Hertz, and perform a normality test on the resulting differences.

a_ The P-value from the Anderson-Darling test of normality is ______. (Do not round.)

b) The necessary conditions for the paired t-test ______(are / are not) satisfied.


c) We are performing a -tailed ________(right / left / two) test.

d) The appropriate critical value(s) for this test is/are_______ . (Report critical values as they appear in the table. If there are two critical values, list them both with only a single space between them. Remember to practice sketching the rejection region.)

Solutions

Expert Solution

City Thrifty Hertz d
Chicago 21.81 18.99 2.82
Los Angeles 29.89 48.99 -19.1
Houston 17.9 19.99 -2.09
Orlando 27.98 35.99 -8.01
Boston 24.61 25.6 -0.99
Seattle 21.96 22.99 -1.03
Pittsburgh 20.9 19.99 0.91
Phoenix 47.75 36.99 10.76
New Orleans 33.81 26.99 6.82
Minneapolis 33.49 20.99 12.5

a) The P-value from the Anderson-Darling test of normality is 0.516.

b) The necessary conditions for the paired t-test are satisfied.


c) We are performing a -tailed left test.

d) The appropriate critical value(s) for this test is - 1.8331.

The critical value -1.8331 is less than the t-value 0.09. Hence, we can conclude that Thrifty is not less expensive than Hertz at the α = 0.1 level of significance.

orchestra answered 2 years ago
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