{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

EC315 Mid Term Solution

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online