Question

Consumers Energy states that the average electric bill across the state is $123.29. You want to test the claim that the average bill amount is actually different from $123.29. The hypotheses for this situation are as follows: Null Hypothesis: μ = 123.29, Alternative Hypothesis: μ ≠ 123.29. You complete a randomized survey throughout the state and perform a one-sample hypothesis test for the mean, which results in a p-value of 0.3178. What is the appropriate conclusion? Conclude at the 5% level of significance.

Question 4 options:

	1) We did not find enough evidence to say a significant difference exists between the true average electric bill and $123.29.
	2) The true average electric bill is significantly different from $123.29.
	3) We did not find enough evidence to say the true average electric bill is less than $123.29.
	4) The true average electric bill is equal to $123.29.
	5) We did not find enough evidence to say the true average electric bill is greater than $123.29.

Suppose the national average dollar amount for an automobile insurance claim is $805.66. You work for an agency in Michigan and you are interested in whether or not the state average is less than the national average. The hypotheses for this scenario are as follows: Null Hypothesis: μ ≥ 805.66, Alternative Hypothesis: μ < 805.66. You take a random sample of claims and calculate a p-value of 0.02 based on the data, what is the appropriate conclusion? Conclude at the 5% level of significance.

Question 5 options:

	1) The true average claim amount is significantly higher than $805.66.
	2) We did not find enough evidence to say the true average claim amount is less than $805.66.
	3) The true average claim amount is higher than or equal to $805.66.
	4) The true average claim amount is significantly different from $805.66.
	5) The true average claim amount is significantly less than $805.66.

You are interested in whether the average lifetime of Duracell AAA batteries is less than the average lifetime of Energizer AAA batteries. If Duracell is considered group 1 and Energizer group 2, what are the hypotheses for this test?

Question 6 options:

	1) HO: μ1 = μ2 HA: μ1 ≠ μ2
	2) HO: μ1 > μ2 HA: μ1 ≤ μ2
	3) HO: μ1 ≥ μ2 HA: μ1 < μ2
	4) HO: μ1 ≤ μ2 HA: μ1 > μ2
	5) HO: μ1 < μ2 HA: μ1 ≥ μ2

Answer 1