A taxi company wish to know whether the use of radial tires instead of regular belted tires: Statistical Methods And Inference Assignment, SUSS, Singapore

Question 5

A taxi company wish to know whether the use of radial tires instead of regular belted tires will improve fuel economy for its fleet. Twenty-five cars were equipped with radial tires and driven 100 km over a test route. Without changing drivers, the same cars were then fitted with regular belted tires and driven once again over the same 100 km route at a similar speed. The petrol consumption, in kilometres per litre, was recorded and shown in Table Q5.

Apply a suitable hypothesis test with α = 0.05 to determine if there is a difference in fuel efficiency of the cars when using radial or belted tires.

1. (a)  Show the name of the selected hypothesis test and justify your answer.
2. (b)  Formulate the null and alternative hypotheses.

(c)  Perform the hypothesis test and comment on the results of the hypothesis test