Question

Toyota USA is studying the effect of regular versus high-octane gasoline on the fuel economy of its new high-performance, 3.5-liter, V6 engine. Ten executives are selected and asked to maintain records on the number of miles traveled per gallon of gas. The results are:

	Miles per Gallon				Miles per Gallon
Executive	Regular	High-Octane		Executive	Regular	High-Octane
Bowers	25	28		Rau	38	40
Demars	33	31		Greolke	29	29
Grasser	31	35		Burns	42	37
DeToto	45	44		Snow	41	44
Kleg	42	47		Lawless	30	44

State the decision rule. Use the 0.05 significance level.

H0 rejected if T <= _______

Answer 1

Sol:

Ho:

Ha:

df=17

perform t test for mean in excel

reject Ho ,if t<-1.7396

Here t stat=-0.7469615

p=0.2326

p>0.05

Fail to reject Ho

There is no sufficent statistical evidence at 5% level of significance to conclude that there is an effect

high-octane gasoline on the fuel economy of its new high-performance, 3.5-liter, V6 engine.