1. Part (a) The data set has information on the mileage of both domestic and for

Question

1.

Part (a)

The data set has information on the mileage of both domestic and foreign cars. Using = 0.05, carry out an F-test in Excel to test whether the population variances of the mileage between the two types of car are equal.

Part (b)
Based on the F-test, what is your decision (“reject” or “do not reject”) regarding the null hypothesis that the two population variances are equal to each other? Indicate on which part of the Excel output you base your decision.

Automobiles' Mileage Mileage of DomesticMileage of Foreign Cars 17 23 25 23 24 24 21 21 25 28 24 14 26 25 18 21 18 23 30 25 25 17 25 28 30 14 26 18 23 29 25 25 17 Cars 17 15 18 16 19 14 14 21 29 16 19 18 16 17 28 21 12 12 14 14 15 18 14 21 19 19 18 19 24 16 18 18 18 19 19 19 24

Explanation / Answer

Sol:

Anova: Single Factor

Ho:both mileage group means are same

H1;

From Anoiva table F =9.32198

p=0.003402

That is p value less than the stated level of significance

p<0.05

Reject Null hypothesis

There is sufficent statistical evidence at 5% level of significance to conlcude that

mileage of both domestic and foreign cars are different.

data used

Anova: Single Factor

Ho:both mileage group means are same

H1;

both mileage groups are different SUMMARY Groups Count Sum Average Variance mileage of domesticctars 52 1031 19.82692 22.49887 mileage of foreign cars 33 757 22.93939 18.55871 ANOVA Source of Variation SS df MS F P-value F crit Between Groups 195.573 1 195.573 9.32198 0.003042 3.955961 Within Groups 1741.321 83 20.97977 Total 1936.894 84

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