1. You are to use the State Gas Tax as of April 1, 2017 data available in my pic
ID: 3309391 • Letter: 1
Question
1. You are to use the State Gas Tax as of April 1, 2017 data available in my pick-up folder. You are to test the hypothesis that the first 10 states listed on page 2 (from highest tax to lowest tax) are significantly higher in state tax on gasoline compared to the next 10 states listed (11-20). The first 10 states listed are Pennsylvania through North Carolina and the next 10 states are Rhode Island to Georgia. Please double check your data for accuracy (and make sure you skipped the US average). For this analysis, you need to use the total tax rate per state. To test this, use a T-Test: Two-Sample Assuming Unequal Variances. It is found in the data analysis tab in excel. I want you to test your hypothesis at the 1 % level (hint: you need to change alpha to 0.01). Is there any evidence that the first 10 states are significantly higher in state tax on gas compared to the next 10 states? Explain your findings, paying particular attention to differences between the two sample means and sample variances. Please paste a copy of your excel output.
Gasoline Motor Fuel Taxes as of April 1, 2017 77.70 Pennsylvania Washingtorn Hawaii , New York Michigan Connecticut California New Jersey Florida North Carolina Rhode Island linois 67.80 62.62 61.94 5934 58.55 57.20 55.50 55.19 52.95 52.40 52.15 51.92 51.90 Nevadal Maryland Idaho Wisconsin Indiana 51.40 51.30 51.24 West Virginia l 50.60 49.53 49.50 Oregon U.S. Average Georgia lowa Vermont Maine 49.49 49.10 48.86 48.41 48:40 : 47.81H: South Dakota : Utahi innesota Nebraska 47.00 46:60 . 46.41 : Ohio Montana Massachusetts Kentucky 46.15 44.94 44.40Explanation / Answer
Null Hypothesis: There is no significant difference between the Two group's state tax on gasoline.
Vs
Alternative Hypothesis: There is a significant difference between the Two group's state tax on gasoline.
## By using Minitab
Two-Sample T-Test and CI: Group1, Group2
Two-sample T for Group1 vs Group2
N Mean StDev SE Mean
Group1 10 60.88 7.31 2.3
Group2 10 51.19 1.03 0.32
Difference = mu (Group1) - mu (Group2)
Estimate for difference: 9.68600
95% CI for difference: (4.40778, 14.96422)
T-Test of difference = 0 (vs not =): T-Value = 4.15 P-Value = 0.002 DF = 9
Here Pvalue = 0.002 which indicates the rejection of null hypothesis at 5% level of significance.
That is there is a significant difference between the Two group's state tax on gasoline.
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