MATLAB: An Introduction with Applications
6th Edition
ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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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.
Please highlight the answer
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