Answered: Step 3 of 3 : Draw a conclusion and…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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An economist studying inflation in electricity prices in 2018 and 2019 believes that the average price of electricity, even after adjusting for inflation, changed between these two years. To test his claim, he samples 9 different counties and records the average price of electricity in each county from each year. He then adjusts the prices for inflation. His results are given in the following table. Test the economist’s claim at the 0.10 level of significance assuming that the population distribution of the paired differences is approximately normal. Let prices in 2018 be Population 1 and prices in 2019 be Population 2.

Average Residential Retail Prices of Electricity ($/kWh)

2018	2019
19.99	18.65
15.30	17.29
14.40	16.17
17.31	18.68
12.85	13.53
12.41	13.11
14.74	13.13
19.15	19.36
11.84	13.69

Step 3 of 3 :

Draw a conclusion and interpret the decision.

1. We fail to reject the null hypothesis and conclude that there is insufficent evidence at a 0.10 level of significance to support the claim that the average price of electricity, even after adjusting for inflation, changed between 2018 and 2019.

2. We reject the null hypothesis and conclude that there is sufficent evidence at a 0.10 level of significance to support the claim that the average price of electricity, even after adjusting for inflation, changed between 2018 and 2019.

3. We fail to reject the null hypothesis and conclude that there is sufficent evidence at a 0.10 level of significance to support the claim that the average price of electricity, even after adjusting for inflation, changed between 2018 and 2019.

4. We reject the null hypothesis and conclude that there is insufficent evidence at a 0.10 level of significance to support the claim that the average price of electricity, even after adjusting for inflation, changed between 2018 and 2019.

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