Question

Try your skills with Excel by performing a t-test for independent samples using these data which show city miles per gallon for cars from two different makers. Assume unequal variances. Please read again section 3.1.1 and then enter these data into Excel, insert a text box, state the null and alternative hypotheses, your conclusion of test result and comment on any business implications based on your conclusion of the test. Use 0.05 significance level.

Maker A	Maker B
18	24
15	27
16	25
17	31
15	35
14	24
14	32
14	26
14	30
12	22
13	22
15	34
13	33
22	39
12	37

Answer 1

Null hypothesis, H, -14 – Ilı = 0 Alternative hypothesis, H, :Mi - Hz 0 Level of significance, a = 0.05. By using the excel software to perform two sample t-test with the help following procedure: • Enter the data in excel sheet. Click on Data in the excel tool bar Choose Data analysis → t-Test: Two-Sample Assuming Unequal Variances → ok In hypothesis dialog box, choose data input and enter the input range of sample 1 as Maker A and sample 2 as Maker B. • Enter hypothesis difference is 0 + alpha (0.05). . Click ok. To get the required output is given below:

t-Test: Two-Sample Assuming Unequal Variances Maker A Maker B 14.93333 29.4 6.638095 30.68571 15 15 0 Mean Variance Observations Hypothesized Mean Difference df t Stat P(T<=t) one-tail t Critical one-tail P(T<=t) two-tail t Critical two-tail 20 -9.17109 0.0000 1.724718 0.0000 2.085963 From the above output, The test statistic is t = -9.17 (round to 2 decimal places) The p-value is 0.0000 Decision rule: Reject H,, if psa otherwise do not reject H.- Since the p-value is less than the significance level and reject the null hypothesis at 5% level of significance. Conclusion: There is sufficient evidence to support the claim that there is a significant difference in the city miles per gallon for cars from two different makers A and B.