An economist studying inflation in electricity prices in 2018 and 2019 believes that the average price of electricity, even after adjusting for inflation, changed between these two years. To test his claim, he samples 99 different counties and records the average price of electricity in each county from each year. He then adjusts the prices for inflation. His results are given in the following table. Test the economist’s claim at the 0.010.01 level of significance assuming that the population distribution of the paired differences is approximately normal. Let prices in 2018 be Population 1 and prices in 2019 be Population 2. Average Residential Retail Prices of Electricity ($/kWh) 2018 2019 12.1012.10 10.7610.76 18.1118.11 16.5016.50 16.6316.63 17.3717.37 13.9613.96 14.7714.77 15.5515.55 14.4514.45 14.2314.23 13.0913.09 20.3520.35 17.8617.86 17.5417.54 16.4816.48 16.0316.03 17.1217.12 What is the value of the test statistic reject or fail to reject the null? Sufficient or insufficient evidence?
An economist studying inflation in electricity prices in 2018 and 2019 believes that the average price of electricity, even after adjusting for inflation, changed between these two years. To test his claim, he samples 99 different counties and records the average price of electricity in each county from each year. He then adjusts the prices for inflation. His results are given in the following table. Test the economist’s claim at the 0.010.01 level of significance assuming that the population distribution of the paired differences is approximately normal. Let prices in 2018 be Population 1 and prices in 2019 be Population 2. Average Residential Retail Prices of Electricity ($/kWh) 2018 2019 12.1012.10 10.7610.76 18.1118.11 16.5016.50 16.6316.63 17.3717.37 13.9613.96 14.7714.77 15.5515.55 14.4514.45 14.2314.23 13.0913.09 20.3520.35 17.8617.86 17.5417.54 16.4816.48 16.0316.03 17.1217.12 What is the value of the test statistic reject or fail to reject the null? Sufficient or insufficient evidence?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 2CYU
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An economist studying inflation in electricity prices in 2018 and 2019 believes that the average price of electricity, even after adjusting for inflation, changed between these two years. To test his claim, he samples 99 different counties and records the average price of electricity in each county from each year. He then adjusts the prices for inflation. His results are given in the following table. Test the economist’s claim at the 0.010.01 level of significance assuming that the population distribution of the paired differences is approximately normal. Let prices in 2018 be Population 1 and prices in 2019 be Population 2.
Average Residential Retail Prices of Electricity ($/kWh)
| 2018 | 2019 |
|---|---|
| 12.1012.10 | 10.7610.76 |
| 18.1118.11 | 16.5016.50 |
| 16.6316.63 | 17.3717.37 |
| 13.9613.96 | 14.7714.77 |
| 15.5515.55 | 14.4514.45 |
| 14.2314.23 | 13.0913.09 |
| 20.3520.35 | 17.8617.86 |
| 17.5417.54 | 16.4816.48 |
| 16.0316.03 | 17.1217.12 |
What is the value of the test statistic
reject or fail to reject the null? Sufficient or insufficient evidence?
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