You're a data analyst for an insurance company. You want to make sure that your employer is not over-paying for car repairs. To investigate this, you bring 40 different cars to two different garages, Bubba's Hubcap Heaven and Repair, and Merle's Motor Shop. Some of the cars need lots of repairs. Some of the cars need very few. By taking each car to both shops, we can directly compare the two sets of prices.  Before running your analysis, be sure to look at the data file and verify that each car requires a different amount of repairs, and that prices in one shop are correlated with prices at the other shop. That is, they're in the same ballpark

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You're a data analyst for an insurance company. You want to make sure that your employer is not over-paying for car repairs. To investigate this, you bring 40 different cars to two different garages, Bubba's Hubcap Heaven and Repair, and Merle's Motor Shop. Some of the cars need lots of repairs. Some of the cars need very few. By taking each car to both shops, we can directly compare the two sets of prices. 

Before running your analysis, be sure to look at the data file and verify that each car requires a different amount of repairs, and that prices in one shop are correlated with prices at the other shop. That is, they're in the same ballpark. 


The question is whether one tends to charge more, on average, than the other. Your task is to use Excel to test the research hypothesis that prices are different in the two shops; the null hypothesis is that prices are equal between the two shops. You test at the alpha = 0.05 significance level. 

What do you conclude? Are prices the same? Who has higher prices? 

Group of answer choices

You do not reject the null hypothesis; Merle and Bubba charge the same.

You reject the null hypothesis; Merle and Bubba charge the same.

You reject the null hypothesis; prices are different. Bubba charges more than Merle.

You reject the null hypothesis; prices are different. Merle charges more than Bubba.

cost e1 e2 Bubba Merle
5366 709 793 6075.00 6158.00
4383 832 1103 5214.00 5486.00
6123 983 602 7106.00 6725.00
4416 564 1454 4980.00 5870.00
6998 656 1179 7654.00 8177.00
5776 801 839 6577.00 6615.00
3613 554 764 4166.00 4377.00
3552 546 1095 4098.00 4647.00
5751 1197 770 6948.00 6521.00
7306 698 1452 8004.00 8759.00
8083 874 1064 8956.00 9147.00
6817 932 1008 7749.00 7824.00
5795 1021 748 6817.00 6543.00
5560 1267 813 6828.00 6373.00
8075 795 636 8870.00 8711.00
1640 830 793 2470.00 2433.00
5167 1011 1328 6178.00 6495.00
4593 1335 835 5928.00 5428.00
2643 1797 1106 4440.00 3749.00
4896 675 327 5571.00 5223.00
6426 728 1314 7154.00 7740.00
8563 719 782 9282.00 9345.00
4229 267 1455 4496.00 5684.00
6809 860 935 7669.00 7745.00
6532 865 422 7397.00 6954.00
4447 926 1002 5373.00 5450.00
8343 583 949 8927.00 9292.00
4047 514 1038 4561.00 5085.00
6292 1102 1466 7394.00 7758.00
5587 867 908 6454.00 6495.00
6562 552 801 7114.00 7363.00
8213 502 1291 8715.00 9504.00
5347 751 937 6098.00 6285.00
6043 271 1020 6314.00 7063.00
7767 291 714 8058.00 8481.00
3634 315 914 3948.00 4548.00
5437 755 747 6192.00 6184.00
5928 382 838 6310.00 6766.00
9431 1317 393 10748.00 9824.00
6979 686 1011 7665.00 7990.00
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