Business Case Studies & Business Publications

Tesla and the Future of Autonomous Drivi...

Baucells, Manel, Y...

Case

Tesla and the Future of Autonomous Driving

Baucells, Manel; Yemen, Gerry

QA-0911 | Published May 28, 2019 | 3 pages Case

Collection: Darden School of Business

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An investor, Janice Zhuk, examines Tesla's quarterly safety data that includes the number of miles it took to register one accident among Tesla cars driving with autopilot versus those without autopilot. The data set is small, so the validity of any statistical analysis may be compromised. The data allow one to run a simple t-test comparison of means. Because of the small sample size, the case invites a discussion on the hypothesis of the regression model, in particular, the normality of the residuals.

Use a regression with autopilot dummy to examine if autopilot is statistically safer Alternatively, use a paired t-test to conduct the same analysis Importance of the normality assumption of residuals when the sample size is small Use the model to predict total lives saved by adopting autopilot