Question
An economist studying inflation in electricity prices in 2018 and 2019 believes that the average price of electricity, even after adjusting for inflation, changed between
An economist studying inflation in electricity prices in 2018 and 2019 believes that the average price of electricity, even after adjusting for inflation, changed between these two years. To test his claim, he samples9different counties and records the average price of electricity in each county from each year. He then adjusts the prices for inflation. His results are given in the following table. Test the economist's claim at the0.02level of significance assuming that the population distribution of the paired differences is approximately normal.Let prices in 2018 be Population 1 and prices in 2019 be Population 2.
2018 | 2019 |
---|---|
16.24 | 17.96 |
12.06 | 11.58 |
17.24 | 18.82 |
12.78 | 14.34 |
14.32 | 12.51 |
15.54 | 17.15 |
18.36 | 19.67 |
12.74 | 12.88 |
14.21 | 13.85 |
Step2of3:
Compute the value of the test statistic. Round your answer to three decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started