Hotpot stoves use a standard oven insulation. To test its effectiveness they take random samples from the production line and heat the ovens selected to 400°C, noting the time taken to cool to 350°C after switching off. For a sample of 8 ovens the times in minutes are: 15.7, 14.8, 14.2, 16.1, 15.3, 13.9, 17.2, 14.9 They decide to explore a cheaper insulation, and using this on a sample of 9 the times taken for the same temperature drop are: 13.7, 14.1, 14.7, 15.4, 15.6, 14.4, 12.9, 15.1, 14.0

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter2: Mathematics For Microeconomics
Section: Chapter Questions
Problem 2.16P
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Hotpot stoves use a standard oven insulation. To test its effectiveness
they take random samples from the production line and heat the
ovens selected to 400°C, noting the time taken to cool to 350°C after
switching off. For a sample of 8 ovens the times in minutes are:
15.7, 14.8, 14.2, 16.1, 15.3, 13.9, 17.2, 14.9
They decide to explore a cheaper insulation, and using this on a
sample of 9 the times taken for the same temperature drop are:
13.7, 14.1, 14.7, 15.4, 15.6, 14.4, 12.9, 15.1, 14.0
Are the firm justified in asserting there is no real evidence of a
different rate of heat loss? Obtain a 95 per cent confidence limit for
the difference in median heat loss (a) with and (b) without a
normality assumption. Comment critically on any differences between
your conclusions.
Transcribed Image Text:Hotpot stoves use a standard oven insulation. To test its effectiveness they take random samples from the production line and heat the ovens selected to 400°C, noting the time taken to cool to 350°C after switching off. For a sample of 8 ovens the times in minutes are: 15.7, 14.8, 14.2, 16.1, 15.3, 13.9, 17.2, 14.9 They decide to explore a cheaper insulation, and using this on a sample of 9 the times taken for the same temperature drop are: 13.7, 14.1, 14.7, 15.4, 15.6, 14.4, 12.9, 15.1, 14.0 Are the firm justified in asserting there is no real evidence of a different rate of heat loss? Obtain a 95 per cent confidence limit for the difference in median heat loss (a) with and (b) without a normality assumption. Comment critically on any differences between your conclusions.
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