Exam1D. FA02

# Exam1D. FA02 - COURSE MSCI 3710 EXAM 1 Version D S.S Print...

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1 Use the information given below to answer the next 2 questions. The CEO of Mean Green Cab Company believes there is a difference between the durability of two brands of tires, Minus and 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. Excel output for the test, on the sample data, conducted at the 5% significance level is shown in the tables below. t-Test: Two-Sample Assuming Equal Variances Rub Minus Mean 0.2415 0.2538 Variance 0.0004 0.0009 Observations 10 10 Pooled Variance 0.0007 Hypothesized Mean Difference 0 df 18 t Stat -1.0183 P(T<=t) one-tail 0.161 t Critical one-tail 1.734 P(T<=t) two-tail 0.322 t Critical two-tail 2.101 1. To test the claim that there is a difference between the durability of Rub and Minus brands (μ R – μ M ), which of the following is the critical value of the test statistic at the 5% level of significance? A. 1.734 B. 2.101* C. 1.330 D. -2.113 E. -1.018 2. What are the decision and conclusion for the test, if the test is conducted at the 5% significance level? A. Reject the null hypothesis, conclude there is evidence of a significant difference between the durability of the Minus and Rub brands. B. Reject the null hypothesis, conclude there is insufficient evidence that there is no significant difference between the durability of the Minus and Rub brands. C.
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## This note was uploaded on 03/09/2011 for the course DSC 3710 taught by Professor Staff during the Spring '09 term at North Texas.

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Exam1D. FA02 - COURSE MSCI 3710 EXAM 1 Version D S.S Print...

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