A Major US

question 1

Essay

A major U.S.oil company has developed two blends of gasoline.Managers are interested in estimating the difference in mean gasoline mileage that will be obtained from using the two blends.As part of their study,they have decided to run a test using the Chevrolet Impala automobile with automatic transmissions.They selected a random sample of 100 Impalas using Blend 1 and another 100 Impalas using Blend 2.Each car was first emptied of all the gasoline in its tank and then filled with the designated blend of the new gasoline.The car was then driven 200 miles on a specified route involving both city and highway roads.The cars were then filled and the actual miles per gallon were recorded.The following summary data were recorded:
Blend 1 Blend 2
Sample Size 100 100
Sample Mean 23.4 mpg 25.7 mpg
Sample St.Dev.4.0 mpg 4.2 mpg
Based on these sample data,compute and interpret the 95 percent confidence interval estimate for the difference in mean mpg for the two blends.

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Definitions:

Annually

Referring to events or measurements that occur once every year.

Indexed Bonds

The interest rate of such a bond is based on an inflation index such as the consumer price index (CPI), so the interest paid rises automatically when the inflation rate rises, thus protecting the bondholders against inflation.

United States

A country located in North America with a federal republic government, known for being one of the world's largest economies.

Companies Creditors Arrangements Act

A Canadian federal law providing financially troubled corporations the opportunity to restructure their affairs through a formal plan of arrangement.