One-sample t-test command

Reference no: EM13113191

The national average for the price of a gallon of unleaded regular gas is $1.16. I believe the price is higher in my area of the country. I want to test my claim by randomly selecting gas prices for 25 stations in my area. The following prices are:

$1.27 $1.29 $1.16 $1.20 $1.37

1.20 1.23 1.19 1.20 1.24

1.16 1.07 1.27 1.09 1.35

1.15 1.23 1.14 1.05 1.35

1.21 1.14 1.14 1.07 1.10

The prices listed above are normally distributed. Using a one-sample t-test command and a level of significance of .05, state the five steps of the hypothesis testing procedure using:

a) non-directional hypothesis

b) directional hypothesis

What should my recommendations be based on the hypothesis and the results?

Are the decisons different in part a (non-directional) than in part b (directional)? Explain why they would differ even if they don't?

What are the tradeoffs of the two types of hypothesis?

Reference no: EM13113191

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