2. The average gasoline price of one of the major oil companies has been $1.00 per gallon. Because of shortages in production of crude oil, it is believed that there has been a significant increase in the average price. In order to test this belief, we randomly selected a sample of 36 of the company's gas stations and determined that the average price for the stations in the sample was $1.04. Assume that the standard deviation of the population (o) is $0.12. a) State the null and the alternative hypotheses for testing the belief. b) Describe a Type I error and a Type II error for this situation. c) What is the critical value at a = .05? wan

MATLAB: An Introduction with Applications
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2. The average gasoline price of one of the major oil companies has been $1.00 per
gallon. Because of shortages in production of crude oil, it is believed that there
has been a significant increase in the average price. In order to test this belief, we
randomly selected a sample of 36 of the company's gas stations and determined
that the average price for the stations in the sample was $1.04. Assume that the
standard deviation of the population (o) is $0.12.
a) State the null and the alternative hypotheses for testing the belief.
b) Describe a Type I error and a Type II error for this situation.
c) What is the critical value at a = .05?
d)
what's your
What is the t-statistic or z-statistic associated with the above sample
results?
Transcribed Image Text:2. The average gasoline price of one of the major oil companies has been $1.00 per gallon. Because of shortages in production of crude oil, it is believed that there has been a significant increase in the average price. In order to test this belief, we randomly selected a sample of 36 of the company's gas stations and determined that the average price for the stations in the sample was $1.04. Assume that the standard deviation of the population (o) is $0.12. a) State the null and the alternative hypotheses for testing the belief. b) Describe a Type I error and a Type II error for this situation. c) What is the critical value at a = .05? d) what's your What is the t-statistic or z-statistic associated with the above sample results?
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