In lowspeed crash tests of five SMART cars the repair costs

In low-speed crash tests of five SMART cars, the repair costs were computed for a factory-authorized repair center and an independent repair facility.The results are listed in the accompanying table.

Is there sufficient evidence to support the claim that the independent center has lower repair costs?Use a 0.05 significance level.

Authorized repair center

$797

$571

$904

$1,147

$418

Independent repair center

$523

$488

$875

$911

$297

Write the following:

a. H_0: write the null hypothesis

b. H₁: write the alternative hypothesis

c. Decision Rule: write what would lead to the rejection of H₀ (include the appropriate sign or signs)

d. Calculations: Determine the experimental statistic

e. Conclusion: write the conclusion and why that particular conclusion was drawn

Solution

1)the null hypothesis is u0-a1=0

2)alterbnative hypothesisi,ua-ui >0

3)the p value lower than 5% will lead to the rejection of H0 the null hypothesis

3) running the sample test leads to the following

test stat ,t=.8543

p value is =.2090

degree of freedom=.7.9590

As the p value is greater than 5%,we cannot rejec the null hypothesis