Question
In a recent report, a consumer advocacy group has argued that the average cost of leasing a vehicle in Canada is falling. However, this raises
In a recent report, a consumer advocacy group has argued that the average cost of leasing a vehicle in Canada is falling. However, this raises the question of whether this finding applies to all classes of vehicles. Assume you're interested in determining whether this trend applies to MiniVans. You obtain a sample of monthly payments for five randomly selected minivans in 2018 and five in 2019 and compute the following descriptive statistics, confidence levels and results to a test on variances: 2018 2019 Mean 592.00 520.00 Standard Error 21.85 35.94 Standard Deviation 48.86 80.36 Sample Variance 2387.00 6458.50 Range 105.00 200.00 Minimum 547.00 406.00 Maximum 652.00 606.00 Count 5.00 5.00 Confidence Level (95.0%) 60.66 99.79 a) State and interpret the individual 95% confidence intervals for 2018 and 2019. b) Perform the appropriate test based on the advocacy groups claim. c) Were the F-test results useful here? Explain. F-Test Two-Sample for Variances F 0.37 P-value (two-tail) 0.36
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