QNT275-Gamma Corporation is considering the

Question # 00554912 Posted By: rey_writer Updated on: 06/30/2017 11:43 PM Due on: 07/01/2017
Subject Statistics Topic General Statistics Tutorials:
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Gamma Corporation is considering the installation of governors on cars driven by its sales staff. These devices would limit the car speeds to a preset level, which is expected to improve fuel economy. The company is planning to test several cars for fuel consumption without governors for 1 week. Then governors would be installed in the same cars, and fuel consumption will be monitored for another week. Gamma Corporation wants to estimate the mean difference in fuel consumption with a margin of error of estimate of 2 mpg with a 90% confidence level. Assume that the differences in fuel consumption are normally distributed and that previous studies suggest that an estimate of sd=3sd=3 mpg is reasonable. How many cars should be tested? (Note that the critical value of tt will depend on nn, so it will be necessary to use trial and error.)

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