The average gasoline prices from 10 randomly selected cities across the United States are listed below. 3.455 3.509 3.376 3.483 4.106 3.915 3.586 3.858 3.107 3.936 Test the claim that the standard deviation of gas prices across the country is $0.3. Assume normality, and use a 0.05 significance level.
The average gasoline prices from 10 randomly selected cities across the United States are listed below.
3.455 3.509 3.376 3.483 4.106 3.915 3.586 3.858 3.107 3.936
Test the claim that the standard deviation of gas prices across the country is $0.3. Assume normality, and use a 0.05 significance level.
1) State the null and alternative hypotheses
A) σ=0.3σ=0.3 B) σ>0.3σ>0.3
C) σ≠0.3σ≠0.3 D) σ<0.3σ<0.3
Answer A, B, C, or D in the box
Ho:
H1:
2) Compute test statistics. Round the answer to one decimal place.
Test statistics =
3) Compute the critical value. Round your answer to one decimal place.
Critical Value on the left =
Critical Value on the right =
4) Decision
E) Reject the Ho
F) Do not reject the Ho
Type E or F in the box
5) Conclusion
G) There is enough evidence to support the claim that the standard deviation of gas prices across the country is $0.3.
H) There is not enough evidence to support the claim that the standard deviation of gas prices across the country is $0.3.
Type G or H in the box
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