Automobile manufacturing company


A large automobile manufacturing company is trying to decide whether to purchase brand A or brand B tires for its new models. To help arrive at a decision, an experiment is conducted using 12 of each brand. The tires are run until they wear out. The results are Brand A: x1 = 37, 900 kilometers, s1 = 5,100 kilometers. Brand B: x1 = 39,800 kilometers, s2 = 5, 900 kilometers. Test the hypothesis that there is no difference in the average wear of 2 brands of tires. Assume the populations to be approximately normally distributed with equal variances. Use a P-value.

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Finance Basics: Automobile manufacturing company
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