Two Major Automobile Manufacturers Have Produced Compact Cars with Engines

question 20

Multiple Choice

Two major automobile manufacturers have produced compact cars with engines of the same size.We are interested in determining whether or not there is a significant difference in the mean MPG (miles per gallon) when testing for the fuel efficiency of these two brands of automobiles.A random sample of eight cars from each manufacturer is selected, and eight drivers are selected to drive each automobile for a specified distance.The following data (in miles per gallon) show the results of the test.Assume the population of differences is normally distributed. $\begin{array}{lll}\text { Driver} & \text { Manufacturer A } & \text { Manufacturer B } \\1 & 32 & 28 \\2 & 27 & 22 \\3 & 26 & 27 \\4 & 26 & 24 \\5 & 25 & 24 \\6 & 29 & 25 \\7 & 31 & 28 \\8 & 25 & 27\end{array}$
At $\alpha$ = .10, the null hypothesis

• A) should not be rejected.
• B) should be rejected.
• C) should be revised.
• D) should not be tested.

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Definitions:

Consumer Insurance

A financial product that provides coverage for individuals against potential losses related to their personal assets, health, or life.

Marginal Utility

The change in satisfaction or utility received by consuming an additional unit of a good or service.

Total Utility Function

A mathematical representation of the total satisfaction received from consuming a certain amount of goods or services.

Risk-Averse

A characteristic of individuals who prefer to avoid risk and would rather choose an option with a more certain but possibly lower return over an uncertain option with a potentially higher return.