Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

V An industrial plant wants to determine which of two types of fuel, electric or gas, is more cost efficient (measured in cost per unit

image text in transcribed
image text in transcribed
V An industrial plant wants to determine which of two types of fuel, electric or gas, is more cost efficient (measured in cost per unit of energy). Independent random samples were taken of plants using electricity and plants using gas. These samples consisted of7 plants using electricity, which had a mean cost per unit of $40.03 and standard deviation of $8.39, and 12 plants using gas, which had a mean of $48.90 and standard deviation of $8.67. Assume that the populations of costs per unit are normally distributed for each type of fuel, and assume that the variances of these populations are equal. Can we conclude, at the 0.05 level of significance, that the mean cost per unit for plants using electricity, \"1' is less than the mean cost per unit for plants using gas, \"2? Perform a one-tailed test. Then complete the parts below. Carry your intermediate computations to three or more decimal places and round your answers as specified in the table. (If necessary, consult a list of formulas.) (a) State the null hypothesis H0 and the alternative hypothesis H1. H O p H0 : [I _ A x S p H1 : D (b) Determine the type of test statistic to use. (Choose one) V |Il=l2l EISEI Dal] (c) Find the value of the test statistic. (Round to three or more decimal places.) [I (d) Find the critical value at the 0.05 level of signicance. (Round to three or more decimal places.) [I (e) Can we conclude that the mean cost per unit for plants using electricity is less than the mean cost per unit for plants using gas? \"Yes \"No

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Statistics

Authors: Robert R. Johnson, Patricia J. Kuby

11th Edition

978-053873350, 9781133169321, 538733500, 1133169325, 978-0538733502

More Books

Students also viewed these Mathematics questions