Compute the standard error and test statistic

Assignment Help Business Economics
Reference no: EM131101275

The average gasoline price of one of the major oil companies in Europe has been $1.25 per liter. Recently, the company has undertaken several efficiency measures in order to reduce prices. Management is interested in determining whether their efficiency measures have actually reduced prices. A random sample of 49 of their gas stations is selected and the average price is determined to be $1.20 per liter. Furthermore, assume that the standard deviation of the population (σ) is $0.14.

a. Compute the standard error.

b. Compute the test statistic.

c. What is the p-value?

d. Develop appropriate hypotheses such as the rejection of the null will support the contention that management efficiency measures had reduce gas prices in Europe.

e. At what is your conclusion? Use the critical value approach. 05.0=α

f. Repeat the preceding hypothesis test using the p-value approach.

Reference no: EM131101275

Questions Cloud

The contract curve for this exchange economy : Exchange: Anna’s utility function is UA(x 1 A, x2 A) = x 1 A + 2p x 2 A, while Bailey’s utility function is UB(x 1 B, x2 B) = x 1 B + 4p x 2 B, where the superscript indicates the good and the subscript names the person. Anna’s initial endowment of g..
What is the exchange rate compatible : The price of a commodity in New Zealand is NZD10, whereas the price of the same commodity in Australia is AUD6. The current exchange rate (NZD/AUD) is 1.15. (a) Is there violation of LOP? (b) If so, what will happen? (c) What is the Australian dollar..
Determine how many permits to issue : Horsehead, Massachusetts lies on a bay inhabited by lobsters. The town council issues permits for trapping lobsters and is trying to determine how many permits to issue. Assume that is costs $2,000 to operate a lobster boat and that if there are x bo..
Give the null and the alternative hypotheses : A producer of various kinds of batteries has been producing "D" size batteries with a life expectancy of 87 hours. Due to an improved production process, management believes that there has been an increase in the life expectancy of their "D" size bat..
Compute the standard error and test statistic : The average gasoline price of one of the major oil companies in Europe has been $1.25 per liter. Recently, the company has undertaken several efficiency measures in order to reduce prices. Management is interested in determining whether their efficie..
What are the consequences of making this error : Suppose a new production method will be implemented if a hypothesis test supports the conclusion that the new method reduces the mean operating cost per hour. state the appropriate null and alternative hypotheses if the mean cost for the current prod..
Because high production-changeover time and costs : Because high production-changeover time and costs, a director of manufacturing must convince management that a proposed manufacturing method reduces costs before the new method can be implemented. A research study will measure the cost of the new met..
Law and economics-consider the model of land assembly : Consider the model of land assembly (under the topic Eminent Domain). Specifically, assume that a buyer want to buy two contiguous properties owned by two different owners. You can assume that the properties are identical in all respects. There two p..
Examples of automatic stabilizers except : All of the following are examples of automatic stabilizers except :

Reviews

Write a Review

Business Economics Questions & Answers

  Estimate the owner decision to start sound devices

Estimate the owner's decision to start Sound Devices. Are any of the above costs likely to be one-time costs? If so, how would this affect your answers. Explain.

  The marginal benefit of the first bottle

It is a hot day at the beach. Ice water costs $2 per bottle and this is your only option. Your marginal benefit for water follows the equation MB = $10 - $x. x is represents the number of bottles of ice water you have had. So, for example, the margin..

  Affect short-run interest rates and output

Using IS-LM analysis show graphically and explain how a liquidity trap affects the Fed’s ability to use conventional monetary policy to affect short-run interest rates and output.

  Market demand and supply curves

There is currently a surplus of allowance at the price of zero. What must be true of the relative positions of the market demand and supply curves? Explain. If the EPA were to allow firms to use allowances to emit sulfur dioxide as they did in the pa..

  What dowe know about the proportion of peanut butter to jam

Draw the Edgeworth box of this situation and draw the contract curve. What dowe know about the proportion of peanut butter to jam held by Adam in any equilibrium?

  Qthe mundell-fleming model takes the world interest rate r

q.the mundell-fleming model takes the world interest rate r as an exogenous variable. lets consider illustrate what

  Least squares method for estimating industry demand

Ordinary least- squares method or the two- satge least squares method for estimating industry demand for rutabagas.

  Q1 corporate probability declined by 20 percent from 2008

q1. corporate probability declined by 20 percent from 2008 to 2009. elucidate presentation percentage that would use to

  Average fixed costs per chip and marginal costs per widget

Advanced Electronics (AE) is a computer chip manufacturer. It has monthly fixed costs of $4,000,000. Its marginal costs are $1.00 per chip. What happens if sales fall by 20% from 3,000,000 to 2.400.000 chips per month? What happens to average fixed c..

  Create and administer a survey of potential customers

Consider that you just got your dream job as a marketing research manager of a small company. Your first duty is to create and administer a survey of potential customers. Your new company wants the survey done as soon as possible. About 75% of the wa..

  Alternative to conventional monetary policy

What are the advantages and disadvantages of quantitative easing as an alternative to conventional monetary policy when short-term interest rates are at the zero-lower bound?

  Evaluate the role of executive level

Evaluate the role of an Executive Level BPM Group. Who would be members of that group and how is this group responsible for reducing resistance to change? Deduce at least one method by which the organization can reduce change resistance?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd