The price of gasoline can vary considerably across states

Reference no: EM13685248

The price of gasoline can vary considerably across states in the US. The US national average price per gallon last month was $3.55. Do you think that the price of gas in Miami is more or less expensive than the national average? A representative survey of 50 gas stations in Miami and the price per gallon is found in the associated data file. a. Formulate the null and alternative hypotheses used to decide whether Miami has a dissimilar average price for gas than the national average. Describe why your formulation is appropriate for the current context. b. What is the appropriate test statistic for this situation? Why? Calculate the value of the test statistic. Provide an intuitive explanation of this value. c. Compute the p-value. Provide an explicit interpretation of this value in the present context. d. Using five percent significance, what would you conclude? Does your conclusion change if you use ten percent significance? How does the risk of a kind II error change if you move to ten percent significance? Describe the importance of this change in type II error.

Reference no: EM13685248

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