Suppose that the neighboring cities of Tweed and Ledee are long-term rivals. Nea

Question

Suppose that the neighboring cities of Tweed and Ledee are long-term rivals. Neal, who was born and raised in Tweed, is confident that Tweed residents are more concerned about the environment than the residents of Ledee. He knows that the average electricity consumption of Tweed households last February was 654.32 kWh and decides to test if Ledee residents used more electricity that month, on average. He collects data from 45 Ledee households and calculates the average electricity consumption to be 687.81 kWh with a standard deviation of 117.17 kWh. There are no outliers in his sample data. Neal does not know the population standard deviation nor the population distribution. He uses a one-sample t-test with a significance level of 0.05 to test the null hypothesis, Ho: = 654.32, against the alternative hypothesis, Hi : > 65432, where is the average electricity consumption of Ledee households last February. Neal calculates a t-statistic of 1.917 and a p-value of 0.031 Based on these results, complete the following sentences to state the decision and conclusion of the test Neal's decision is to : the (p = 0.031). There is evidence to the claim that the average electricity consumption of is

Explanation / Answer

Here we have the p-value as 0.031 < 0.05 which is the level of significance, therefore the test is significant and we can reject the null hypothesis here. Using this, we fill the given statement as:

Neal's decision is to reject the null hypothesis. ( p = 0.031 ) . There is sufficient evidence to support the claim that the average electricity consumption of all ledee households is greater than 654.32 kWh

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