Question 1
Create a table of the mean, median, standard deviation, and range of the price of the automobiles. Discuss your results.
In your discussion, explain the following:
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How the mean compares to the median, and what this indicates about the distribution of prices (e.g., skewness or presence of high-priced vehicles). Use 10% rule to identify the distribution type.
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What the standard deviation reveals about the variability in automobile prices.
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Whether the results suggest a wide or narrow price range, and any implications for understanding the automobile market.
Question 2
Construct a pie chart showing the percentage distribution of cars by the “MAKE” of the car. The chart must display each make with its corresponding percentage, using data labels formatted as percentages.
Based on your chart, identify which make of car represents the largest proportion (largest wedge) in your sample and briefly explain what this means.
Question 3 and 4
A complete write-up for Questions 3 and 4 must include:
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Clearly stated assumptions
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Appropriate hypothesis statements (H₀ and Hₐ)
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Statistical analysis using the p-value approach
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Clear statistical conclusions
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Managerial interpretation and discussion of results
Question 3
Construct a 94% confidence interval for the true mean PRICE of cars in the population, and interpret the interval in context.
Question 4
Is there evidence that the population mean PRICE for 6-cylinder cars is greater than the population mean PRICE for 4-cylinder cars? Use α = 0.08 to conduct the test.
Record the p-value from your statistical analysis and use it to make your statistical decision.
Hint: Answer this question using the approach demonstrated in class.