# Hypothesis testing of tires and fuel economy

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A taxi company manager is trying to decide if the use of radial tires instead of regular belted tires improves fuel economy. As a test, twelve cars are equipped with belted tires and the cars are driven over a prescribed test course. Without changing drivers the same cars were then equipped with the radial tires and driven once again over the test course. The gasoline consumption in kilometers/liter is recorded in the attachment.

Can we conclude that the radial tires improve fuel economy (i.e. higher kilometers/liter)? Assume the fuel data is from normally distributed populations. State your hypotheses and use the P-value in your conclusion.

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##### Solution Summary

This solution is provided in 268 words and is included in a .doc and .xls file. It goes through multiple stages through hypothesis testing, calculating t-value, estimated standard error, and mean square error.

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Problem 6

A taxi company manager is trying to decide if the use of radial tires instead of regular belted tires improves fuel economy. As a test twelve cars are equipped with belted tires and the cars are driven over a prescribed test course. Without changing drivers the same cars were then equipped with the radial tires and driven once again over the test course. The gasoline consumption in kilometers/liter is recorded as ...

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