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5) Cost of Residential Water. On its municipal website, the city of Tulsa states that the rate it charges per 5 CCF of residential water is $21.62. How do the residential water rates of other US public utilities compare to Tulsa’s rate? The file ResidentialWater contains the rate per 5 CCF of residential water for 42 randomly selected US cities.Formulate hypotheses that can be used to determine whether the population mean rate per 5 CCF of residential water charged by US public utilities differs from the $21.62 rate charged by Tulsa.What is the p-value for your hypothesis test in part (a)?At a = .05, can your null hypothesis be rejected? What is your conclusion?Repeat the preceding hypothesis test using the critical value approach.Public Utility CompanyRate (5 CCF)Orlando Utilities Commission$10.48Memphis Light, Gas and Water$9.18Central Arkansas Water$11.80City of Phoenix Water System$6.50City of Lincoln Water System$12.42San Antonio Water System$14.53Salt Lake City Public Utilities$15.56Nashville Metro Water Services$10.12City of Dover Water System$14.50Lakeland Electric$16.18Huntsville Utilities$17.60Omaha Metropolitan Utilities District$19.18Jacksonville Electric Authority$17.98City of Dallas Water System$12.85City of St. Louis Water System$16.80Charleston Water System$17.35City of Clewiston Water System$15.64Springfield (IL) City Water, Light and Power$14.80City Of Milwaukee Water System$18.91Detroit Sewerage and Water Department$17.99City of Charlotte Water System$14.90Louisville Water Company$18.42City of Jackson (MS) Water System$16.05Las Vegas Valley Water District$26.85City of Columbus OH Water System$22.32City of Oklahoma City - Utilities$22.76Jackson TN Energy Authority$20.98Knoxville Utilities Board$23.45New York City Water Board$19.05Reno Truckee Meadows Water Authority$23.70Chattanooga American Water Company$19.26Marietta Board of Lights & Water$23.75City Utilities of Springfield MO$27.80Indianapolis Citizens Energy Group$27.05City of Philadelphia Water System$27.14LA Sewerage and Water Board of New Orleans$26.99Boston Water and Sewer Commission$24.68Birmingham Water Works$37.86Austin Water$26.51City of Bellevue Water System$39.01City of Los Angeles Water System$29.46Peoria American Water$41.65

Question

5) Cost of Residential Water. On its municipal website, the city of Tulsa states that the rate it charges per 5 CCF of residential water is $21.62. How do the residential water rates of other US public utilities compare to Tulsa’s rate? The file ResidentialWater contains the rate per 5 CCF of residential water for 42 randomly selected US cities.

  1. Formulate hypotheses that can be used to determine whether the population mean rate per 5 CCF of residential water charged by US public utilities differs from the $21.62 rate charged by Tulsa.
  2. What is the p-value for your hypothesis test in part (a)?
  3. At a = .05, can your null hypothesis be rejected? What is your conclusion?
  4. Repeat the preceding hypothesis test using the critical value approach.
Public Utility Company Rate (5 CCF)
Orlando Utilities Commission $10.48
Memphis Light, Gas and Water $9.18
Central Arkansas Water $11.80
City of Phoenix Water System $6.50
City of Lincoln Water System $12.42
San Antonio Water System $14.53
Salt Lake City Public Utilities $15.56
Nashville Metro Water Services $10.12
City of Dover Water System $14.50
Lakeland Electric $16.18
Huntsville Utilities $17.60
Omaha Metropolitan Utilities District $19.18
Jacksonville Electric Authority $17.98
City of Dallas Water System $12.85
City of St. Louis Water System $16.80
Charleston Water System $17.35
City of Clewiston Water System $15.64
Springfield (IL) City Water, Light and Power $14.80
City Of Milwaukee Water System $18.91
Detroit Sewerage and Water Department $17.99
City of Charlotte Water System $14.90
Louisville Water Company $18.42
City of Jackson (MS) Water System $16.05
Las Vegas Valley Water District $26.85
City of Columbus OH Water System $22.32
City of Oklahoma City - Utilities $22.76
Jackson TN Energy Authority $20.98
Knoxville Utilities Board $23.45
New York City Water Board $19.05
Reno Truckee Meadows Water Authority $23.70
Chattanooga American Water Company $19.26
Marietta Board of Lights & Water $23.75
City Utilities of Springfield MO $27.80
Indianapolis Citizens Energy Group $27.05
City of Philadelphia Water System $27.14
LA Sewerage and Water Board of New Orleans $26.99
Boston Water and Sewer Commission $24.68
Birmingham Water Works $37.86
Austin Water $26.51
City of Bellevue Water System $39.01
City of Los Angeles Water System $29.46
Peoria American Water $41.65
check_circleAnswer
Step 1

5.

 

1)

 

The hypothesis for checking whether the population mean rate per 5 CCF of residential water charged by US public utilities differs from $21.62 rate charged by Tulsa or not.

 

Null Hypothesis:

 

H0: µ=21.62.

 

That is, the population mean rate per 5 CCF of residential water charged by US public utilities is equal to $21.62.

 

Alternative Hypothesis:

 

Ha: µ≠21.62.

 

That is, the population mean rate per 5 CCF of residential water charged by US public utilities is different from $21.62.

Step 2

2)

 

The p-value for the hypothesis testing is 0.2568 and it is obtained below:

 

The mean value for the given sample observations is 20.2383 and it is calculated by using Excel function, “=AVERAGE (A2:A43)”.

The standard deviation is 7.7991 and it is calculated by using Excel function,

“=STDEV (A2:A43)”.

The number of sample observations is n=42.

The degree of freedom is, – 1 = 42– 1 = 41.

Since, alternative hypothesis is two tailed
p-value 2Pt<.
20.2383-21.62
- 2P t<
7.7991
42
= 2x P(t <-1.15
help_outline

Image Transcriptionclose

Since, alternative hypothesis is two tailed p-value 2Pt<. 20.2383-21.62 - 2P t< 7.7991 42 = 2x P(t <-1.15

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Step 3

The value of P(t<-1.15) is 0.1284 and it is obtained by using the Excel function

“=T.DIST(-1.15 (te...

p-value 2x P(t<-1.15)
=2x0.1284
0.2568
help_outline

Image Transcriptionclose

p-value 2x P(t<-1.15) =2x0.1284 0.2568

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