Prices. Kelley\'s Blue Book (kbb.com) publishes data on new and used cars table

Question

Prices. Kelley's Blue Book (kbb.com) publishes data on new and used cars table contains the fair market value for five new 2013 and 2014 vehicles (d July 2014). We are interested in the difference in price between the 2013 mo 014 models. Assume that the population of price differences is normally dist ther 2014 models are on average more expensive, using level of significance Toyota Camry $20,672 Honda FordChevyTesla Civic $17,069$24,362$45,684$68,738 150 Corvette Model S mple 1) $20,284 $16,499 $22,674 $44,021 568,674 mple 2)

Explanation / Answer

data

2014   2013
20672   20284
17069   16499
24362   22674
45684   44021
68738   68674

using Excel

data -> day analysis -> t-test 2 sample with variance equal

result

since p-value for one-tail is 0.475535009 > 0.01

we fail to reject the null hypothesis

there is not sufficient evidence that 2014 models are expensive than 2013

t-Test: Two-Sample Assuming Equal Variances 2014 2013 Mean 35305 34430.4 Variance 472978691 481118107.3 Observations 5 5 Pooled Variance 477048399.2 Hypothesized Mean Difference 0 df 8 t Stat 0.063313782 P(T<=t) one-tail 0.475535009 t Critical one-tail 2.896459448 P(T<=t) two-tail 0.951070019 t Critical two-tail 3.355387331

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