Gasbuddy.com states that the mean gasoline price for the Houston area is $1.92.

Question

Gasbuddy.com states that the mean gasoline price for the Houston area is $1.92. From the information gathered in September specialists say that the gasoline prices were higher than now. According to our data can we say that the prices were significantly different than they are now? We will use a hypothesis test to prove this.

a.) Give the null and alternative hypothesis.

b.) Describe the assumptions of this hypothesis test. Determine if the test statistic you are using is appropriate. Fully explain.

c.) Determine the p-value

d.) Give a conclusion of this hypothesis test. Use = 0.01.

Explanation / Answer

a)The null hypothesis is:

H0:mu=1.92 (The population mean is $1.92)

Agaisnt the alternative hypothesis:

H1:mu not equal to 1.92 (The population mean is different from $1.92)

b)THe assumptions of this hypothesis test is:

Random sampling from a defined population Interval or ratio scale of measurement Population is normally distributed

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.