Question

1. Tom’s Top End Motors and Fast Eddie’s Quality Cars are two local used car dealers. Tom and Eddie are comparing their sales. The mean monthly sales are similar, however, Tom Monroe (owner of Tom’s Top End Motors) thinks his sales are no more consistent than Fast Eddie’s. Below is a listing of the number of cars sold for the last eight months for Tom’s Top End Motors and for the last seven months for Fast Eddie’s Quality Cars.

Tom’s Top End Motors	90	76	52	45	76	62	68
Fast Eddie’s Quality Cars	88	93	81	30	82	37	51	101

Conduct a hypothesis test (using α = 0.05) to see if you agree with Tom’s view that his sales are no more consistent.

List all the steps of the hypothesis test and write a note to Tom telling him whether you agree with him or not and back up your conclusion.

Answer 1