Question

A local utility company claims that its customers' natural gas bills average less than $ 260...

A local utility company claims that its customers' natural gas bills average less than $ 260 during the winter months of January, February, and March. A consumer group randomly selected 22 accounts for the three-month period and found the following natural gas bill amounts:

269.96
273.52
277.9
268.06
253.07
274.31
268.79
258.67
269.64
263.21
270.82
273.44
276.66
270.64
265.08
273.27
264.68
268.11
262.67
275.12
271.62
251.92


(a) Assume natural gas bills over such a period follow a normal distribution. The test statistic (z/t) is

. Use two decimals.
(b) Find the P-value in (a).

Use three decimal places.
(c) Do the data above provide statistical evidence to doubt the utility company's claim?  ? Yes No Test at α=0.07

Homework Answers

Answer #1

Here we are using "R"

a) Test statistics:

t = 5.53

b) P-value = 1.000

c) NO

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