The U.S. Energy Information Administration claimed that in 2017, U.S. residential customers used an average of 10,399 kilowatt hours (kWh) of electricity. A local power company believes that residents in their area use more electricity on average than EIA’s reported average. To test their claim, the company chooses a random sample of 100 of their customers and calculates that these customers used an average of 10,608 kWh of electricity in the prior year. Assuming that the population standard deviation is 1361 kWh, is there sufficient evidence to support the power company’s claim at the 0.05 level of significance? (a) Symbolically, state the null and alternative hypothesis and state which is the claim. (b) Calculate the standardized test statistic. You must show a filled out standardized test statistic formula. (c) Find either the critical values and identify the rejection regions or find the p-value. Also, decide whether to reject or fail to reject the null hypothesis and be sure to state the reason why. (d) Interpret the decision in the context of the original claim. You must use complete sentences.
15. The U.S. Energy Information Administration claimed that in 2017, U.S. residential customers used an average of 10,399 kilowatt hours (kWh) of electricity. A local power company believes that residents in their area use more electricity on average than EIA’s reported average. To test their claim, the company chooses a random sample of 100 of their customers and calculates that these customers used an average of 10,608 kWh of electricity in the prior year. Assuming that the population standard deviation is 1361 kWh, is there sufficient evidence to support the power company’s claim at the 0.05 level of significance?
(a) Symbolically, state the null and alternative hypothesis and state which is the claim.
(b) Calculate the standardized test statistic. You must show a filled out standardized test statistic formula.
(c) Find either the critical values and identify the rejection regions or find the p-value. Also, decide whether to reject or fail to reject the null hypothesis and be sure to state the reason why.
(d) Interpret the decision in the context of the original claim. You must use complete sentences.
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