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The American Water Works Association reports that the per capita water use in a single-family home is 74 gallons per day. Legacy Ranch is a relatively new housing development. The builders installed more efficient water fixtures, such as low-flush toilets, and subsequently conducted a survey of the residences. Twenty-five owners responded, and the sample mean water use per day was 69 gallons with a standard deviation of 8.3 gallons per day.
At the 0.05 level of significance, is that enough evidence to conclude that residents of Legacy Ranch use less water on average?
a.What is the decision rule? (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)
Reject H0: µ ≥ 74 when the test statistic is (Click to select)
more than
less than
b.The value of the test statistic is . (Negative amount should be indicated by a minus sign. Round your answer to 3 decimal places.)
c.What is your decision regarding H0? Fail to reject or Reject
What is the value of the test statistic and decision? Show step by step on how you obtained your final answer.
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