A company clalms that the mean monthly residential electricity consumption in a certain region is more than 870 kiloWatt-hours (kWh). You want to test this claim You find that a random sample of 63 residential customers has a mean monthly consumption of 890 kWh. Assume the population standard deviation is 127 kWh. The level of significance a is equal to 0.05. Select the corect option below. ... O A. Fail to reject Ho because the standardized test statistic is in the rejection region. O B. Reject Ho because the standardized test statistic is in the rejection region. O C. Reject H, because the standardized test statistic is not in the rejection region. O D. Fail to reject Ho because the standardized test statistc is not in the rejection region.

A First Course in Probability (10th Edition)
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ISBN:9780134753119
Author:Sheldon Ross
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Chapter1: Combinatorial Analysis
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**Hypothesis Testing Contextual Example**

A company claims that the mean monthly residential electricity consumption in a certain region is more than 870 kilowatt-hours (kWh). You want to test this claim. You find that a random sample of 63 residential customers has a mean monthly consumption of 890 kWh. Assume the population standard deviation is 127 kWh. The level of significance α is equal to 0.05.

**Question:**

Select the correct option below.

- **A.** Fail to reject \(H_0\) because the standardized test statistic is in the rejection region.
- **B.** Reject \(H_0\) because the standardized test statistic is in the rejection region.
- **C.** Reject \(H_0\) because the standardized test statistic is not in the rejection region.
- **D.** Fail to reject \(H_0\) because the standardized test statistic is not in the rejection region.

**Calculator Functionality:** 
Users may use the calculator to compute and verify statistical calculations as they analyze the problem.

**Copyright Information:**

Copyright © 2021 Pearson Education Inc. All rights reserved. Terms of Use | Privacy Policy | Permissions | Contact

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In this problem, students are expected to:
1. Identify the null (\(H_0\)) and alternative (\(H_a\)) hypotheses.
2. Calculate the standardized test statistic.
3. Determine the rejection region based on the level of significance.
4. Make a conclusion regarding whether to reject or fail to reject the null hypothesis.
Transcribed Image Text:**Hypothesis Testing Contextual Example** A company claims that the mean monthly residential electricity consumption in a certain region is more than 870 kilowatt-hours (kWh). You want to test this claim. You find that a random sample of 63 residential customers has a mean monthly consumption of 890 kWh. Assume the population standard deviation is 127 kWh. The level of significance α is equal to 0.05. **Question:** Select the correct option below. - **A.** Fail to reject \(H_0\) because the standardized test statistic is in the rejection region. - **B.** Reject \(H_0\) because the standardized test statistic is in the rejection region. - **C.** Reject \(H_0\) because the standardized test statistic is not in the rejection region. - **D.** Fail to reject \(H_0\) because the standardized test statistic is not in the rejection region. **Calculator Functionality:** Users may use the calculator to compute and verify statistical calculations as they analyze the problem. **Copyright Information:** Copyright © 2021 Pearson Education Inc. All rights reserved. Terms of Use | Privacy Policy | Permissions | Contact --- In this problem, students are expected to: 1. Identify the null (\(H_0\)) and alternative (\(H_a\)) hypotheses. 2. Calculate the standardized test statistic. 3. Determine the rejection region based on the level of significance. 4. Make a conclusion regarding whether to reject or fail to reject the null hypothesis.
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