# Automotive Analyst

Question

a. If an automotive analyst wished to show that damage to SUVs with less than a three-star rating cost over \$1500 more than SUVs with a three-star rating, how would you set up the null and alternative hypotheses?

b. If a random sample of 25 SUVs with a three-star rating that were involved in collisions showed an average damage amount of \$5810 and a random sample of 25 SUVs with less than a three-star rating also involved in collisions showed an average damage amount of \$8000, would these data support the alternative hypothesis in question a?

Use a significance level of 10%. Assume that the data are from normally distributed populations with known standard deviations of \$1450 for the SUVs with three-star ratings and \$1625 for the SUVs with less than three-star ratings.

c. Suppose that in question b, the standard deviations of \$1450 and \$1625 were computed from the sample. Using a t test, would the results of the test change? Explain. (Note: no calculations required).

Question

Problem 12-7:

Sample 1 Sample 2 Sample 3

14 17 17            13 16 14            12 16 15

15 18 16            16  14              16

A. Conduct a one way analysis of   variance use alpha = .05

B. If warranted, use the tukey kramer to determine which populations have different means use an experiment   wide error of .05

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