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 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)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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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.
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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.
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