TEST OF HYPOTHESIS ABOUT md

DEPENDENT SAMPLES

A manufacturer of shock absorbers would like to advertise that their shock absorbers last longer than those produced by its biggest competitor. To see if there is support for such a claim, six of the manufacturer’s shocks and six of the competitor’s shocks were randomly selected, and one of each brand was installed on the rear wheels of each of six cars. After the cars had been driven 20,000 miles, the strength of each shock absorber was measured. These data are below.

Is there sufficient evidence to conclude that the manufacturer’s shocks have a greater mean strength after 20,000 miles of driving than the competitor’s? Use a .01 level of significance.

 

SOLUTION

The parameter of interest is md, the difference in the mean strength of the manufacturer’s shocks and the competitor’s shocks after 20,000 miles of driving.

H0: mD = 0         Ha: mD > 0

Decision Rule: Accept Ha if the calculated p-value < .01.

Calculations from StatCrunch: t = 7.68, p-value = 0.0003 < .01 ---> Accept Ha

Interpretation: At the .01 significance level I conclude that the manufacturer’s shock absorbers have a greater mean strength after being on cars for 20,000 miles than the competitor’s shock absorbers.

 

COMMENTS ABOUT THE SOLUTION

Hypothesis test results:
μ1 - μ2 : mean of the paired difference between Manufacturer and Competitor
H0 : μ1 - μ2 = 0
HA : μ1 - μ2 > 0
 

Difference

Sample Diff.

Std. Err.

DF

T-Stat

P-value

Manufacturer - Competitor

0.41666666

0.054262735

5

7.678689

0.0003