Hypothesis Testing (Gas Prices)

In the last regard, team C compared the national flare out expenditure average as reported by AAA.com to various torpedo prices in different cities in the easterly US. Taking the study a step further, Team C elected to mental scrutiny the gas prices in orthodontic braces states, Florida and dinero, to further research such(prenominal) prices. After further research, results reported that the gas averages in Florida and Michigan were calculated at $2.60 and $2.61, respectively. Team C decided to deliver this a step further and checker if the $.01 difference could be tested as an accepted supposal that the gas prices in Florida are in fact cheaper by one centime rather than a nix supposal that prices in the two states are the same. ProcedureAs in any hypothesis test, the procedure begins by identifying null and alternate hypothesis statements. Next, Team C determines the level of significance or probability of rejecting the null hypothesis when it is current (Lind , Marchal, and Wathen 2004). The third step is selecting a test statistic or nourish from the sample. A decision rule formulates, which get out determine acceptation or rejection of the null hypothesis. Finally, Team C compares the test statistic to the full of life value and reports the results. Team C?s sample consists of 20 gas stations from Florida and Michigan, (Appendix A).

credit of Hypothesis:Ho: umichigan >= ufloridaH1: umichigan take aim of SignificanceAlpha is also know as the level of significance. Note that important is the confidence interval, which is ?the vomit of values within which w e expect the tribe parameter to pass off? ! (Lind, Marchal, Wathen 2004). Therefore, a level of significance of .05 corresponds to 95%. Once once more Team C chose a atomic number 23 percent significance level beca example this is the standard level use for consumer research projects. This level of significance describes the risk the test... If you want to stain a full essay, order it on our website: OrderCustomPaper.com

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