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The Owner of a Service Station Wants to Determine Whether

question 18

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The owner of a service station wants to determine whether the owners of new cars (two years old or less) change their cars' oil more frequently than owners of older cars (more than two years old). From his records, he takes a random sample of 10 new cars and 10 older cars and determines the number of times the oil was changed for each in the last 12 months. The data are shown below.  Frequency of oil changes in the past 12 months  New car owners  Old car owners 64323132433262535241\begin{array}{l}\text { Frequency of oil changes in the past } 12 \text { months }\\\begin{array} { | c | c | } \hline \text { New car owners } & \text { Old car owners } \\\hline 6 & 4 \\\hline 3 & 2 \\\hline 3 & 1 \\\hline 3 & 2 \\\hline 4 & 3 \\\hline 3 & 2 \\\hline 6 & 2 \\\hline 5 & 3 \\\hline 5 & 2 \\\hline 4 & 1 \\\hline\end{array}\end{array} Do these data allow the service station owner to infer at the 10% significance level that new car owners change their cars' oil more frequently than older car owners?

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability and the ability to raise capital through stock.

Stockholders

Individuals or entities that own shares in a corporation, giving them ownership interest.

Limited Risk

Exposure to a relatively small possibility of loss or less severe consequences in an investment or business activity.

Assets

Resources owned by a business or individual that have economic value and can provide future benefits.

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