MSCI 3710Two sample t-test (Chapter 9): Sample Exam Problem 5Note: The following problem is taken from the Mid-term Exam in Fall 2002, questions 6-7.The CEO of Mean Green Cab Company believes there is a difference between the durability of two brands of tires, Minusand Rub. The CEO decides to test her belief by running an experiment. To conduct the experiment, her R & D department uses a machine with a metallic device to wear down the tires and records the tread depth on a random sample of 10 tires of each brand after new tires are spun for an equivalent of 10,000 miles. Exceloutput for the test, on thesample data, conducted at the 5% significance level is shown in the tables below. t-Test: Two-Sample Assuming Equal VariancesRubMinusMean0.24150.2538Variance0.00040.0009Observations1010Pooled Variance0.0007Hypothesized Mean Difference0df18t Stat-1.0183P(T<=t) one-tail0.161t Critical one-tail1.734P(T<=t) two-tail0.322t Critical two-tail2.1011. To test the claim that there is a difference between the durability of Ruband Minusbrands (μR
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Statistical hypothesis testing, Statistical significance, Rub brands, Mean Green Cab Company