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Hypothesis Testing: Paired t test for Car repair costs

Car Repair Costs

Listed below are the costs in dollars of repairing the front ends and rear ends of different cars when they were damaged in controlled low-speed crash tests. The cars are Toyota, Mazda, Volvo, Saturn, Subaru, Hyundai, Honda, volkswagen, and Nissan. Contruct a 95% confidence interval of the mean of the differences between front repair costs and rear repair costs. Is there a difference.

Front repair cost: 936, 978, 2252, 1032, 3911, 4312, 3469, 2598, 4535

Rear repair cost: 1480, 1202, 802, 3191, 1122, 739, 2769, 3375, 1787

Let alpha = 0.05. Let population 1 be front repair cost. Base the claim on mean difference.]



CV/CVs: t =

Test Statistic [Show procedure.] t =

P-value (optional) [Show a range of t values according to Table A-3.]

Conclusion (i.e. decision) on H0:

Final Conclusion on the claim by using Figure 8-7.

Solution Summary

The solution provides step by step method for the calculation of t statistic for paired t test. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.