Question

Question text

7-step Hypothesis Testing Problem

Complete the 7 steps in Excel and upload the file here

Two major automobile manufacturers have produced compact cars with the same size engines.We are interested in determining whether or not there is a significant difference in the MPG (miles per gallon) of the two brands of automobiles.A random sample of eight cars from each manufacturer is selected, and eight drivers are selected to drive each automobile for a specified distance.The following data show the results of the test.

Driver	Manufacturer A	Manufacturer B
1	32	28
2	27	22
3	26	27
4	26	24
5	25	24
6	29	25
7	31	28
8	25	27

At the 0.05 level of significance, conduct a 7-step hypothesis test to determine whether there is a significant difference in the MPG (miles per gallon) of the two brands of automobiles.

Answer 1

We can answer this in excel as follows

Null hypothesis :  there is no significant difference in the MPG (miles per gallon) of the two brands of automobiles

Alternate hypothesis : there is a significant difference in the MPG (miles per gallon) of the two brands of automobiles

alpha is 0.05 , as given in the question

now we enter the data in excel and then perform the t test for difference in means by going to data > data analysis tab,

please see the screenshots below

now as the p value is 0.1283 , which is not less than assumed alpha = 0.05 hence we fail to reject the null hypothesis and conclude that   there is no significant difference in the MPG (miles per gallon) of the two brands of automobiles

Please note that this is a 2 tail non directional test as we are only interested in knowing whether there is a significant difference in MPG of the 2 brands of automobiles

Hope this helps.