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    Hypothesis Testing IMT

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    Nishant Arora
    The document reports the results of t-tests comparing the mileage and top speed of two car models: Rocinante 36 and Marengo 32. T-tests were conducted to test the null hypotheses that the mileage of Rocinante 36 is 22 km/ltr and its top speed is 140 km/hr, and that the mileage of Marengo 32 is 15 km/ltr and its top speed is 210 km/hr. The t-test results show that the null hypothesis is rejected for the mileage of Rocinante 36 but not for its top speed or the mileage and top speed of Marengo 32. Type 2 errors are considered more expensive for the company than type 1 errors.

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    Hypothesis Testing IMT

    Uploaded by

    Nishant Arora
    77 views8 pages
    The document reports the results of t-tests comparing the mileage and top speed of two car models: Rocinante 36 and Marengo 32. T-tests were conducted to test the null hypotheses that the mileage of Rocinante 36 is 22 km/ltr and its top speed is 140 km/hr, and that the mileage of Marengo 32 is 15 km/ltr and its top speed is 210 km/hr. The t-test results show that the null hypothesis is rejected for the mileage of Rocinante 36 but not for its top speed or the mileage and top speed of Marengo 32. Type 2 errors are considered more expensive for the company than type 1 errors.

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    Hypothesis_Testing_IMT

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    The document reports the results of t-tests comparing the mileage and top speed of two car models: Rocinante 36 and Marengo 32. T-tests were conducted to test the null hypotheses that the mileage of Rocinante 36 is 22 km/ltr and its top speed is 140 km/hr, and that the mileage of Marengo 32 is 15 km/ltr and its top speed is 210 km/hr. The t-test results show that the null hypothesis is rejected for the mileage of Rocinante 36 but not for its top speed or the mileage and top speed of Marengo 32. Type 2 errors are considered more expensive for the company than type 1 errors.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    77 views8 pages

    Hypothesis Testing IMT

    Uploaded by

    Nishant Arora
    The document reports the results of t-tests comparing the mileage and top speed of two car models: Rocinante 36 and Marengo 32. T-tests were conducted to test the null hypotheses that the mileage of Rocinante 36 is 22 km/ltr and its top speed is 140 km/hr, and that the mileage of Marengo 32 is 15 km/ltr and its top speed is 210 km/hr. The t-test results show that the null hypothesis is rejected for the mileage of Rocinante 36 but not for its top speed or the mileage and top speed of Marengo 32. Type 2 errors are considered more expensive for the company than type 1 errors.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 8

    Rocinante 36

    Q1.a Null Hypothesis


    Mileage HO = 22 km/ltr
    Top speed HO = 140 km/hr

    Q1.b Alternate Hypothesis


    Mileage H1 ≠ 22 km/ltr
    Top speed H1 ≠ 140 km/hr

    Q2. T-test Rocinante 36


    t-Test: Two-Sample Assuming Unequal Variances

    Mileage Rocinante 36 Mileage (km/ltr) Dum


    Mean 21.6195 0
    Variance 0.859868157894737 0
    Observations 20 6
    Hypothesized Mean Difference 22
    df 19
    t Stat -1.835
    P(T<=t) one-tail 0.041
    t Critical one-tail 1.729
    P(T<=t) two-tail 0.082
    t Critical two-tail 2.093

    t-Test: Two-Sample Assuming Unequal Variances

    Top Speed Rocinante 36 Top speed (km/hr) Dum


    Mean 140.97 0
    Variance 29.1401052631579 0
    Observations 20 6
    Hypothesized Mean Difference 140
    df 19
    t Stat 0.804
    P(T<=t) one-tail 0.216
    t Critical one-tail 1.729
    P(T<=t) two-tail 0.432
    t Critical two-tail 2.093

    Q3. The type of error which is more expensive:

    The Type 2 Error will be more expensive for Random Motors.

    REASON:
    Customers' displeasure will
    eventually result from Random
    Motors selling cars with
    inaccurate specs, which caused
    even their promotions and
    marketing to revolve around their
    claims. Long-term costs will be
    higher for type 2 errors because
    they severely damage the
    company's reputation and brand,
    as opposed to type 1 errors,
    which can sometimes be fixed
    internally.
    Marengo 32

    Q1.a Null Hypothesis


    Mileage HO = 15 km/ltr
    Top speed HO = 210 km/hr

    Q1.b Alternate Hypothesis


    Mileage H1 ≠ 15 km/ltr
    Top Speed H1 ≠ 210 km/hr

    Q2. T-Test Marengo 32


    t-Test: Two-Sample Assuming Unequal Variances

    Mileage Marengo 32
    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

    t-Test: Two-Sample Assuming Unequal Variances

    Top Speed Marengo 32


    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

    Q3. The type of error which is more expensive:

    The Type 2 Error will be more expensive for Random Motors.

    REASON:
    Customers' displeasure will eventually
    result from Random Motors selling
    cars with inaccurate specs, which
    caused even their promotions and
    marketing to revolve around their
    claims. Long-term costs will be higher
    for type 2 errors because they
    severely damage the company's
    reputation and brand, as opposed to
    type 1 errors, which can sometimes
    be fixed internally.
    suming Unequal Variances

    Mileage (km/ltr) Dum


    15.1605 0
    0.210499736842105 0
    20 6
    15
    19
    1.564
    0.067
    1.729
    0.134
    2.093

    suming Unequal Variances

    Top speed (km/hr) Dum


    211.05 0
    26.4847368421053 0
    20 6
    210
    19
    0.912
    0.186
    1.729
    0.373
    2.093
    Rocinante 36 Marengo 32
    Top Top
    Mileage speed Mileage speed
    Car No. (km/ltr) (km/hr) Car No. (km/ltr) (km/hr)
    1 21.2 151.9 1 15.04 211.3
    2 21.79 147.6 2 15.41 207
    3 21.87 145.6 3 15.43 206.2
    4 22.71 136.1 4 15.92 213.4
    5 22.52 139.7 5 15.2 204.2
    6 21.41 146.1 6 15.22 208.7
    7 22.71 139.6 7 14.6 200

    8 21.71 143 8 14.41 210.9

    9 19.95 136.4 9 14.79 208.5


    10 20.65 146.6 10 14.81 214.2
    11 22.86 139.9 11 15.61 215.8
    12 21.12 136.6 12 15.76 215.8
    13 22.8 148.5 13 14.97 215.2
    14 20.89 143.4 14 14.71 218.7
    15 22.49 134.2 15 15.55 208
    16 20.94 140.5 16 15.19 212.2
    17 20.37 137.8 17 15.36 219.7
    18 22.72 135.1 18 15.93 216.4
    19 20.54 138.8 19 14.54 205.8
    20 21.14 132 20 14.76 209
    Rocinante 36
    t-Test: Two-Sample Assuming Unequal Variances

    Mileage Dummy
    Mean 21.62 0
    Variance 0.8599 0
    Observations 20 20

    Hypothesized Mean 22

    df 19
    t Stat -1.8351
    P(T<=t) one-tail 0.0411
    t Critical one-tail 1.7291
    P(T<=t) two-tail 0.0822
    t Critical two-tail 2.0930

    Marengo 32
    t-Test: Two-Sample Assuming Unequal Variances

    Mileage Dummy
    Mean 15.16 0
    Variance 0.2105 0
    Observations 20 20
    Hypothesized Mean 15
    df 19
    t Stat 1.5645
    P(T<=t) one-tail 0.0671
    t Critical one-tail 1.7291
    P(T<=t) two-tail 0.1342
    t Critical two-tail 2.0930

    Derivation using formula


    Rocinante 36
    Mileage Top speed
    Sample Size 20 20 n
    Mean 21.62 140.97 m
    Hypthesised Mean 22 140 X
    Std Deviation 0.9273 5.3982 SD
    Std Error 0.2073 1.2071 SD/√n
    t-stat -1.8351 0.8036 (m - X)/SE
    Deg of Freedom 19 19 n-1
    p-value 0.0822 0.4316 using website
    nte 36
    t-Test: Two-Sample Assuming Unequal Variances

    Top speed Dummy


    Mean 140.97 0
    Variance 29.1401 0
    Observations 20 20

    Hypothesized Mean 140

    df 19
    t Stat 0.8036
    P(T<=t) one-tail 0.2158
    t Critical one-tail 1.7291
    P(T<=t) two-tail 0.4316
    t Critical two-tail 2.0930

    go 32
    t-Test: Two-Sample Assuming Unequal Variances

    Top speed Dummy


    Mean 211.05 0
    Variance 26.4847 0
    Observations 20 20
    Hypothesized Mean 210
    df 19
    t Stat 0.9124
    P(T<=t) one-tail 0.1865
    t Critical one-tail 1.7291
    P(T<=t) two-tail 0.3730
    t Critical two-tail 2.0930

    rmula
    Marengo 32
    Mileage Top speed
    20 20
    15.16 211.05
    15 210
    0.4588 5.1463
    0.1026 1.1508
    1.5645 0.9124
    19 19
    0.1342 0.3730

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