Question
A sample of 27 service stations selected from California showed that the mean price of unleaded gas is $1.02 per gallon with a standard deviation
A sample of 27 service stations selected from California showed that the mean price of unleaded gas is $1.02 per gallon with a standard deviation of $0.03. A sample of 21 service stations selected from Massachusetts showed that the mean price of unleaded gas is $1.13 per gallon with a standard deviation of $0.05. Assume that the prices of unleaded gasoline at all service stations in California and Massachusetts both have normal distributions with equal standard deviations. Test at the 2.5% significance level if the mean price of unleaded gasoline per gallon at all service stations in California is less than the mean price of unleaded gasoline per gallon at all service stations in Massachusetts.
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