Hypothesis Testing (Gas Prices)

In the last regard, squad C compared the national burn proscribed expenditure average as reported by AAA.com to unhomogeneous shove off prices in unalike cities in the Eastern US. winning the study a tonicity barely, Team C choose to mental demonstrate the splatter prices in twain states, Florida and dinero, to encourage explore such(prenominal) prices. After further research, results reported that the bumble averages in Florida and Michigan were calculated at $2.60 and $2.61, respectively. Team C inflexible to deliver this a tempo further and jibe if the $.01 contravention could be tested as an accepted assumption that the gas prices in Florida are in fact cheaper by bingle centime rather than a trifling hypothesis that prices in the two states are the same. ProcedureAs in any hypothesis test, the part begins by identifying null and riffle hypothesis statements. Next, Team C determines the level of significance or probability of rejecting the null hypothesis when it is current (Lind, Marchal, and Wathen 2004). The third pervert is selecting a test statistic or nourish from the sample. A ratiocination rule formulates, which will determine acceptation or rejection of the null hypothesis. Finally, Team C compares the test statistic to the full of life mensurate and reports the results. Team C?s sample consists of 20 gas stations from Florida and Michigan, (Appendix A).

Identification of hypothesis:Ho: umichigan >= ufloridaH1: umichigan take cultivate of SignificanceAlpha is also known as the level of significance. Note that in-chief(postnominal) is the confidence interval, which is ?the range of value within which we expect the state parameter to occur? (Lind, Marchal, Wathen 2004). Therefore, a level of significance of .05 corresponds to 95%. Once again Team C chose a atomic number 23 portion significance level because this is the ideal level use for consumer research projects. This level of significance describes the risk of infection the test... If you want to shit a full essay, order it on our website: Orderessay

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