The file gaso linexls contains regular gasoline

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Lower Atlantic states are lower than the national average. The file Gaso- line.xls contains regular gasoline prices for a sample of 50 service stations from Lower Atlantic states. Use α = 0 . 01 as your level of significance. (In this problem we do not know σ ). 1. Set up your hypotheses. 2. Use Excel to compute the sample mean (¯ x ). Use =AVERAGE(A2:A51) 1
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3. Use Excel to compute the standard deviation ( s ). Use =STDEV(A2:A51) 4. Compute your test statistic using parts 2 and 3. 5. Compute the degrees of freedom ( n - 1). 6. To get the p -value for a lower tail test, type =TDIST( (-1)*your test statistic, degrees of freedom, 1) in an empty cell. Here, (-1)*your test statistic is the number you com- puted in part 4 multiplied by (-1). The degrees of freedom is the number you computed in part 5. The 1 indicates this is a one tailed test. Note: we can also get p -values for upper tailed tests and two-tailed tests: To get the p -value for an upper tail test, type =TDIST(your test statistic, degrees of freedom, 1) in an empty cell. To get the p -value for a two-tailed test: If your test statistic is negative, type =TDIST( (-1)*your test statistic, degrees of freedom, 2) If your test statistic is positive, type =TDIST( your test statistic, degrees of freedom, 2) 7. If your p -value is less than α = 0 . 01 reject H 0 . If your p -value is greater than α = 0 . 01 do not reject H 0 . 2
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