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Hypothesis Testing: Paired t test for Car repair costs

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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.]

H0:

H1:

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.

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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.

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