3. The following data represents the daily rental for a compact automobile charg
ID: 3055811 • Letter: 3
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3. The following data represents the daily rental for a compact automobile charged by two car rental companies in 9 locations. You want to test whether Thrifty has a significantly ifferent cost than Hertz, on average. Large cities were randomly sampled for the study and you may assume that car rental prices are normally distributed in the population. Conduct the appropriate test to determine if there are differences in price, on average, for cities between the two companies. (6 pts) City Chicago Los Angeles Houstorn Orlando Boston Seattle Pittsburgh Phoenix New Orleans Thrifty 21.81 29.89 17.90 27.98 24.61 21.96 20.90 47.74 33.81 Hertz 18.99 48.99 19.99 35.99 25.60 22.99 19.99 36.99 26.99 What are the null and the alternative hypotheses? What are the assumptions (conditions) of this test, and were they met? Why or why a. b. Perform the appropriate test including the formula that you used, the calculated value of the t-statistic (show all work!), and the t-critical you compared to your t- statisti c. d. State your conclusion.Explanation / Answer
Null hypothesis : there is no significance difference ne prices, on avearge between two companies.
Alternative Hypo: there is significance difference ne prices, on avearge between two companies.
Using Minitab:
Two-Sample T-Test and CI: Thrifty, Hertz
Two-sample T for Thrifty vs Hertz
N Mean StDev SE Mean
Thrifty 9 27.40 9.10 3.0
Hertz 9 28.5 10.2 3.4
Difference = (Thrifty) - (Hertz)
Estimate for difference: -1.10
95% CI for difference: (-10.79, 8.58)
T-Test of difference = 0 (vs ): T-Value = -0.24 P-Value = 0.812 DF = 15
P-value > 0.05 we do not reject the null hypothesis.
We can calculate critical value use ''=TINV(0.05, 15)'' excel function which gives critical value is 2.131
So here test statistic -0.24 < T critical 2.131, so do not reject the null hyptheosis we conclude that there is no significance difference ne prices, on avearge between two companies.
Hope this will be helpful. Thanks and God Bless you :-)
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