QUESTION 1 (30marks)
a) Use the variable "Price" to construct the confidence intervals for the estimate of the population mean “Price” for a
(IF YOUR TEAM NUMBER IS ODD) RED CAR (use variable RED),
(IF YOUR TEAM NUMBER IS EVEN) SILVER CAR (use variable SILVER),
at both the 60% and 90% levels. Interpret and compare your confidence intervals.
Include your SPSS output chart for ALL questions, pasted at the bottom.
b) Clearly state all assumptions made in constructing your confidence intervals and discuss why your team made these assumptions? If possible, check to see whether the assumption(s) is(are) satisfied
c) Are the Variances of the Prices of the
(IF YOUR TEAM NUMBER IS ODD) SILVER CARS (use variable SILVER), (IF YOUR TEAM NUMBER IS EVEN) RED CARS (use variable RED),
significantly different from the set of all the other colors at the .06 level of significance?(HINT: use a two-sample Independent t-test, where 1 is the desired color and 0 the remainder.) (READ CAREFULLY. The data has changed! )
Show your output table(s) and discuss your answer. (Hint: first find the variances and then perform the hypothesis testing).
QUESTION 2 (20 marks)
Is there evidence that the population mean odometer reading of the used cars at auction is equal to
(IF YOUR TEAM NUMBER IS ODD) 45,000 miles at the 0.09 level of significance. (IF YOUR TEAM NUMBER IS EVEN) 49,500 miles at the 0.08 level of significance.
and find the confidence interval for your estimate.
QUESTION 3 (20 marks)
Is there evidence that the population mean ODOMETER READING of 4-cylinder cars is greater than that of 6-cylinder cars?
(IF TEAM NUMBER ODD) Use a 9% level of significance. (IF TEAM NUMBER EVEN) Use a 13% level of significance.
Consider 2 cases and discuss your finding carefully
[a] Assume that variances are equal.
[b] Assume that variances are NOT equal.
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