An auto dealer's t-test failed to reject the null hypothesis, indicating no significant difference in braking distances between two sedan models.
Here is the computation of the value of the test statistic:
Step 1: Formulate the null and alternative hypotheses
Null hypothesis (H₀): There is no significant difference in the braking distances of the two models.
Alternative hypothesis (H₁): There is a significant difference in the braking distances of the two models.
Step 2: Calculate the sample means and pooled variances
Mean(Model A) = 153.5
Mean(Model B) = 156
Variance(Model A) = 5.25
Variance(Model B) = 6.25
Step 3: Compute the pooled variance
Pooled Variance = (Σ(nᵢ - 1)sᵢ²) / (Σnᵢ - 2)
= (5*(5.25) + 5*(6.25)) / (6 - 2)
= 5.75
Step 4: Calculate the standard error of the mean difference
SE(Mean Difference) = √[(Pooled Variance) / (n₁ + n₂)]
= √[(5.75) / (6 + 6)]
= 1.30
Step 5: Calculate the test statistic
t = (Mean(Model B) - Mean(Model A)) / SE(Mean Difference)
= (156 - 153.5) / 1.30
= 1.92
Step 6: Determine the p-value
The p-value is the probability of obtaining a test statistic as extreme or more extreme than the one calculated, assuming the null hypothesis is true. In this case, we are using a two-tailed test with α=0.01. The p-value for a two-tailed test is calculated by doubling the one-tailed p-value.
p-value = 2 * P(t > 1.92)
Using a t-distribution table or calculator, we can find that the p-value is approximately 0.055.
Step 7: Make a decision about the null hypothesis
Since the p-value (0.055) is greater than the significance level (0.01), we fail to reject the null hypothesis. In other words, there is not enough evidence to conclude that there is a significant difference in the braking distances of the two models.
Conclusion
The auto dealer cannot conclude that there is a significant difference in the braking distances of the two models of high-end sedans.