Question

# Suppose a study reports that the average price for a gallon of self-serve regular unleaded gasoline is $3.16. You

believe that the figure is higher in your area of the country. You decide to test this claim for your area of the United States by randomly calling gasoline stations. Your random survey of 25 stations produces the following prices (all in dollars). Assume gasoline prices for a region are normally distributed.

Did the data you obtained provide enough evidence to reject the claim? Use a 1% level of significance.

Make sure you clearly state both the null and the alternative hypotheses in full sentences. Following your calculations, clearly state the conclusion in the same manner (do not simply say "accept/reject null") and explain how you arrived at this conclusion (based on which metrics).

3.27

3.3

3.16

3.15

3.11

3.05

3.54

3.25

3.05

3.11

3.13

3.15

3.27

3.14

3.14

3.2

3.3

3.09

3.05

3.07

3.37

3.34

3.35

3.35

3.1

*Make sure you use full sentences for the items below. Do not simply say something like "x1<x2" "or "reject null" without a description and explanation of how you arrived at your conclusion.*

Null hypothesis:

Alternative hypothesis:

Calculated t value:

Conclusion (justify using the metrics):

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