Question: Records of 40 used passenger cars and 40 used pickup trucks (none used commercially) were randomly selected to investigate whether there was any difference in the mean time in years that they were kept by the original owner before being sold. For cars the mean was 5.3 years with standard deviation 2.2 years. For pickup trucks the mean was 7.1 years with standard deviation 3.0 years.
a. Construct the 95% confidence interval for the difference in the means based on these data.
b. Test the hypothesis that there is a difference in the means against the null hypothesis that there is no difference. Use the 1% level of significance.
c. Compute the observed significance of the test in part (b).