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C D www.solutioninn.com/suppose-a-study-reports-that-the-average-price-for-a Search your Topic! Home Mathematics Statistics Suppose a study reports that the average price for a Question: Suppose a study reports that the average price for a Suppose a study reports that the average price for a gallon of self-serve regular unleaded gasoline is $3.76 You believe that the figure is higher in your area of the country. You decide to test this claim for your part of the United States by randomly calling gasoline stations. Your random survey of 25 stations produces the following prices. $3.87 $3.89 $3.76 $3.80 $3.97 3.80 3.83 3.79 3.80 3.84 3.76 3.67 3.87 3.69 3.95 3.75 3.83 3.74 3.65 3.95 3.81 3.74 3.74 3.67 3.70 Assume gasoline prices for a region are normally distributed Do the data you obtained provide enough evidence to reject the claim? Use a 1% level ofsignificance.Explanation / Answer
Null hypothesis H0: =3.76
Alternative hypothesis Ha: >3.76
From data sample man xbar= 3.7948 and sample standard deviation s= 0.0889 with sample size n=25
Test statistic t= (xbar-3.76)/(s/sqrt(n))
=(3.7948-3.76)/(0.0889/sqrt(25))
=1.957
At 1% levelwithdf=n-1=25-1=24 , critical t=2.492
As calculated t<2.492, we do not reject the null hypothesis and conclude that average price is not higher than 3.76
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