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4th Edition

HEALEY + 1 other

Publisher: Cengage Learning,

ISBN: 9781305093836

Chapter 7, Problem 7.10P

Textbook Problem

Expert Solution

To determine

**To find:**

The significant difference between the given statements.

**Given:**

The given information is,

Nationally, the per capita monthly fuel oil bill is

**The five step model for hypothesis testing is:**

Step 1. Making assumptions and meeting test requirements.

Step 2. Stating the null hypothesis.

Step 3. Selecting the sampling distribution and establishing the critical region.

Step 4. Computing test statistics.

Step 5. Making a decision and interpreting the results of the test.

**Formula used:**

For small samples with single sample mean and unknown standard deviation, the *t* value is given by,

Where,

*N* is the sample size.

**Calculation:**

From the given information, the sample size is 36, sample mean is

Follow the steps for two-tailed hypothesis testing as,

Step 1. Making assumptions and meeting test requirements.

Model:

Random sampling.

Level of measurement is interval ratio.

Sampling distribution is Normal.

Step 2. Stating the null hypothesis.

The statement of the null hypothesis is that there is no significant difference in the per capita monthly fuel oil bill between south east cities and the national average.

Thus, the null and the alternative hypotheses are,

Step 3. Selecting the sampling distribution and establishing the critical region.

Since, the sample is small, *t* distribution can be used.

Thus, the sampling distribution is *t* distribution.

The level of significance is

The degree of freedom (*df*) is,

And area of critical region is

Essentials Of Statistics

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