1. **State the problem:** We want to test if the mean repair costs charged by the two branches, Taman U and Taman Daya, are different at a 5% significance level.
2. **Given data:**
- Taman U: mean $\bar{x}_1 = 1073.25$, standard deviation $s_1 = 422.33$, sample size $n_1 = 8$
- Taman Daya: mean $\bar{x}_2 = 1003.125$, standard deviation $s_2 = 383.63$, sample size $n_2 = 8$
3. **Hypotheses:**
- Null hypothesis $H_0$: $\mu_1 = \mu_2$ (means are equal)
- Alternative hypothesis $H_a$: $\mu_1 \neq \mu_2$ (means are different)
4. **Assumptions:**
- Repair costs are normally distributed
- Population standard deviations are equal
5. **Test statistic:** Use the two-sample t-test with pooled variance:
$$
S_p = \sqrt{\frac{(n_1 - 1)s_1^2 + (n_2 - 1)s_2^2}{n_1 + n_2 - 2}}
$$
$$
t = \frac{\bar{x}_1 - \bar{x}_2}{S_p \sqrt{\frac{1}{n_1} + \frac{1}{n_2}}}
$$
Degrees of freedom $df = n_1 + n_2 - 2 = 14$
6. **Calculate pooled standard deviation:**
$$
S_p = \sqrt{\frac{(8-1)(422.33)^2 + (8-1)(383.63)^2}{14}} = \sqrt{\frac{7 \times 178362.83 + 7 \times 147172.57}{14}} = \sqrt{\frac{1248540.81 + 1030207.99}{14}} = \sqrt{\frac{2278748.8}{14}} = \sqrt{162767.77} \approx 403.45
$$
7. **Calculate t-statistic:**
$$
t = \frac{1073.25 - 1003.125}{403.45 \times \sqrt{\frac{1}{8} + \frac{1}{8}}} = \frac{70.125}{403.45 \times \sqrt{0.25}} = \frac{70.125}{403.45 \times 0.5} = \frac{70.125}{201.725} \approx 0.3476
$$
8. **Determine critical t-value:**
At $\alpha = 0.05$ and $df=14$, two-tailed test, critical value $t_{crit} \approx \pm 2.145$
9. **Decision:**
Since $|t| = 0.3476 < 2.145$, we fail to reject the null hypothesis.
10. **Conclusion:**
There is not enough evidence at the 5% significance level to conclude that the mean repair costs differ between the two branches.
Mean Repair Cost C4126E
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