EC315 Midterm Help

EC315 Midterm Help - PROBLEM 1(Weight 20 points NBC TV news...

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PROBLEM 1 (Weight 20 points). NBC TV news, in a segment on the price of gasoline, reported last evening that the mean price nationwide is $1.50 per gallon for self-serve regular unleaded. A random sample of 35 stations in the Milwaukee, WI, area revealed that the mean price was $1.52 per gallon and that the standard deviation was $0.05 per gallon. At the .05 significance level, can we conclude that the price of gasoline is higher in the Milwaukee area? Calculate the p- value and interpret. The question asks for "higher than" so this is a one-tailed test. 0 1.5 H μ = = 1.5 a H = .05 α = 35 ( 1) 34 n df n = = - = / X t n σ - = ; 1.52 1.5 .02 2.367 .00845 .05 / 35 t - = = = Using Excel NORMDIST function, one-tailed p = 0.009 Since p < .05 = , there is sufficient evidence to reject the null hypothesis. The mean price is higher in Milwaukee at a .05 significance. SINGLE SAMPLE TEST, ONE-TAILED, 7 - Step Procedure for t Distributions, "one- tailed test" 1. Parameter of interest: "μ" = population mean price of gasoline
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This note was uploaded on 11/11/2011 for the course EC 315 taught by Professor Barcus during the Spring '10 term at Park.

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EC315 Midterm Help - PROBLEM 1(Weight 20 points NBC TV news...

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