Concerned about the high price of gas,you conduct a hypothesis test to determine if the cost of gas in your area has risen above $1.35 per litre.Use the provided computer output to draw a conclusion about the price of gas at a significance level of 0.05. Test of $H0\mathrm { H } _ { 0 }$ : ? = 1.35 vs $HA\mathrm { H } _ { \mathrm { A } }$ : ? > 1.35
N Mean StDev t P-value
22 1.38 0.08 1.759 0.0466

A) Fail to reject the null - there is evidence that the average gas price has exceeded $1.35 per litre in your area.
B) Reject the null - there is evidence that the average gas price has exceeded $1.35 per litre in your area.
C) Fail to reject the null - there is no evidence that the average gas price has exceeded $1.35 per litre in your area.
D) Reject the null - there is no evidence that the average gas price has exceeded $1.35 per litre in your area.
E) There is insufficient information to draw a conclusion.

Question

Concerned about the high price of gas,you conduct a hypothesis test to determine if the cost of gas in your area has risen above $1.35 per litre.Use the provided computer output to draw a conclusion about the price of gas at a significance level of 0.05. Test of

H0\mathrm { H } _ { 0 }

: ? = 1.35 vs

HA\mathrm { H } _ { \mathrm { A } }

: ? > 1.35
N Mean StDev t P-value
22 1.38 0.08 1.759 0.0466

A) Fail to reject the null - there is evidence that the average gas price has exceeded $1.35 per litre in your area.
B) Reject the null - there is evidence that the average gas price has exceeded $1.35 per litre in your area.
C) Fail to reject the null - there is no evidence that the average gas price has exceeded $1.35 per litre in your area.
D) Reject the null - there is no evidence that the average gas price has exceeded $1.35 per litre in your area.
E) There is insufficient information to draw a conclusion.

kirubel mekuria · Accepted Answer

Final Answer : B, Explanation :  The null hypothesis is that the average gas price is equal to $1.35 per litre, and the alternative hypothesis is that it is greater than $1.35 per litre. The p-value of 0.0466 is less than the significance level of 0.05, which indicates that there is evidence to reject the null hypothesis. Therefore, we can conclude that the average gas price has exceeded $1.35 per litre in your area.

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