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# Comparison of mean fuel expense of the three manufacturers

Scenario: Surging Fuel Prices

Situation:
ABC Trucking Company purchased 15 trucks at the same time to start their business. 5 Trucks were purchased from Peterbilt, 5 from Freightliner, and 5 from Kenworth. All the trucks are used for long distance hauling. The cost of fuel for the first year is shown. Is there a significant difference in the mean fuel expense of the three manufacturers?

Fuel Expense, by Manufacturer
Peterbilt Freightliner Kenworth
\$28,000.00 \$27,000.00 \$25,000.00
\$30,000.00 \$27,000.00 \$28,750.00
\$27,500.00 \$29,000.00 \$28,000.00
\$28,000.00 \$31,000.00 \$26,750.00
\$29,500.00 \$28,750.00 \$29,800.00

The 3 different manufacturers are called treatments.
There are two degrees of freedom in the numerator (3-1=2). There are 12 degrees of freedom in the denominator (15-3 = 12). Determine the critical value of F found in Apendix G. The level of significance is 0.05.

I need help determining the following:

i) State the null and alternate hypothesis
ii) Find the grand mean
iii) Find the grand total within columns
iv) Find the grand total between columns
v) Find the Mean Square Within Columns
vi) Find the Mean Square Between Columns

#### Solution Summary

Statement of the null and alternate hypothesis. Calculation of grand mean, grand total between columns, Mean Square Within Columns, Mean Square Between Columns.

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