1. (8 points) Tom’s Top End Motors and Fast Eddie’s Quality Cars are two local u
ID: 3023405 • Letter: 1
Question
1. (8 points) Tom’s Top End Motors and Fast Eddie’s Quality Cars are two local used car dealers. Tom and Eddie are comparing their sales. The mean monthly sales are similar, however, Tom Monroe (owner of Tom’s Top End Motors) thinks his sales are more consistent. Below is a listing of the number of cars sold for the last eight months for Tom’s Top End Motors and for the last seven months for Fast Eddie’s Quality Cars.
Tom’s Top End Motors
90
76
52
55
66
62
68
Fast Eddie’s Quality Cars
88
93
81
30
82
37
51
101
Post excel file if possible
Conduct a hypothesis test (using = 0.05) to see if you agree with Tom’s view that his sales are more consistent.
List all the steps of the hypothesis test and write a note to Tom telling him whether you agree with him or not and back up your conclusion.
Tom’s Top End Motors
90
76
52
55
66
62
68
Fast Eddie’s Quality Cars
88
93
81
30
82
37
51
101
Explanation / Answer
Here we go for test of equality of two variance . Because we test for consistency. so whose variance is less that will be more consistent
let first population is tom top and second population is Fast eddie
Here
null hypothesis
F=s12/s22=12.9486/27.065=0.4748
p-value for this F is 0.4748 at (6,7) degree of freedom is 0.8
since p-value is greater than alpha=0.5 so we accept null hypothesis Ho:s12=s22
and we reject claim of Tom’s view that his sales are more consistent.
H0:s12=s22 and alternative hypothesis H1: s12<s22Related Questions
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