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EC315 Mid Term Solution

# EC315 Mid Term Solution - Mid Term Help 1 Null hypothesis...

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Mid Term Help 1. Null hypothesis Ho: μ = \$1.50 Alternative hypothesis Ha: μ > \$1.50 Test statistic: Therefore, Determination of the P-value: The test is based on (n -1) = (35-1) = 34 df (degrees of freedom). Table shows area under the 34 df curve to the right of t = 2.36 is 0.012 (approximately) Conclusion: with significance level = 0.05, above shows P-value <= significance level, [0.012 <= 0.05]. Null hypothesis Ho: μ = \$1.50 should be rejected. Therefore, the "true mean" of price of gasoline in Milwaukee, Wisconsin area is higher than \$1.50 to a significance level of 0.05. 2. a) Since in this case, the random variable is a discrete variable, and hence its probability distribution is a discrete probability distribution

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EC315 Mid Term Solution - Mid Term Help 1 Null hypothesis...

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