d. State the requirements that have been met to run the test. e. What is the test statistic and the p-value? (Make sure you use the right notation.) f. Should you reject or fail to reject the null hypothesis? g. State the conclusion for the test. h. According to your findings, has the price of oil decreased? Explain your reasoning based upon the hypothesis test.
According to a large oil company, the average cost per barrel of oil last year was $47. You believe that due to the current oil crisis in Russia and Iran that the cost of a barrel of oil has decreased. You collect a simple random sample of 60 barrels of oil and find an average price of $42 and a standard deviation of $12. Use this information to answer the following questions and conduct the hypothesis test with a level of significance of ?? = .01. You may use Statcrunch or a calculator. Write all non-calculation answers in complete sentences.
d. State the requirements that have been met to run the test.
e. What is the test statistic and the p-value? (Make sure you use the right notation.)
f. Should you reject or fail to reject the null hypothesis?
g. State the conclusion for the test.
h. According to your findings, has the price of oil decreased? Explain your reasoning based upon the hypothesis test.
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