Acct 1010 Statistics

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ECMT 1010 Economics and Business Statistics A Assignment 1, 2010 Question 1: (a) Prepare a table showing relevant summary statistics for the fuel efficiency of all vehicles. Briefly discuss the relevant aspects of your findings. Table 1: Both Auto and Manual Models Fuel Efficiency (L/100km) Mean 7.632657498 Standard Error 0.170608732 Median 7.709114704 Mode 8 Standard Deviation 1.525970889 Sample Variance 2.328587155 Kurtosis -0.451538264 Skewness -0.001472956 Range 6.78524281 Minimum 4.71475719 Maximum 11.5 Sum 610.6125998 Count 80 As it can be seen in table 1, the mean of the fuel efficiency for auto and manual cars is 7.63 L/100km. The fuel efficiency for all cars can range between a minimum value of 4.71 L/100km and a maximum value of 11.50…show more content…
E.g. A car with a weight of 1255kg will use approximately 4.82 L/100km. A car with a larger weight of 1818kg will use approximately 10.85 L/100km. Therefore with an increase of 563kg the car consumes an increase of 6.03 L/100km. Question 2: Your friend in the environmental group suspects that vehicles with manual transmission (population 1) is more fuel-efficient than those with auto transmission (population 2). Perform a hypothesis test to check your friend’s suspicion. You must clearly state your null and alternative hypothesis, your conclusions, and the intermediate steps that lead to your conclusions. Since the two populations (manual and auto) are dependent, a paired t-test will need to be performed in order to determine the difference between the two dependent populations. Since σ is unknown, n=40, and we assume the population is normal, the t-distribution will be used. HYPOTHESISE: H0: D = 0 Ha: D < 0 TEST: The appropriate statistical test is: α = 0.05 (As α was not given, I used 0.05 because it is one of the most common type 1 error rates used in statistical

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