Question
ALocal utility company claims that the monthly electricity bills of its customers are among the lowest in the state- with an average monthly bill of
ALocal utility company claims that the monthly electricity bills of its customers are among the lowest in the state- with an average monthly bill of $95.57. An energy analyst believes that the average monthly electricity bill from this utility company is actually higher than $95.57. The analyst collected a random sample of 42 monthly electricity bills from this utility company and found that the average monthly bill of the sample was $103.36, with a standard deviation of $13.16. Use the critical value method to test the hypothesis that the average monthly electricity bill for customers of this local utility is greater than $95.57, using a(alpha)=0.005. A) state the null and alternative hypothesis B) determine the critical value C) determine the test statistic D) determine the appropriate decision
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