Question

On its municipal website, the city of Tulsa states that the rate it charges per 5 CCF of residential water is $21.62. How do the residential water rates of other U.S. public utilities compare to Tulsa's rate? The data shown below ($) contains the rate per 5 CCF of residential water for 42 randomly selected U.S. cities.

10.48 | 9.18 | 11.8 | 6.5 | 12.42 | 14.53 | 15.56 |

10.12 | 14.5 | 16.18 | 17.6 | 19.18 | 17.98 | 12.85 |

16.8 | 17.35 | 15.64 | 14.8 | 18.91 | 17.99 | 14.9 |

18.42 | 16.05 | 26.85 | 22.32 | 22.76 | 20.98 | 23.45 |

19.05 | 23.7 | 19.26 | 23.75 | 27.8 | 27.05 | 27.14 |

26.99 | 24.68 | 37.86 | 26.51 | 39.01 | 29.46 | 41.65 |

(a) Formulate hypotheses that can be used to determine whether the population mean rate per 5 CCF of residential water charged by U.S. public utilities differs from the $21.62 rate charged by Tulsa. (Enter != for ≠ as needed.)

H_{0}:

H_{a}:

(b) What is the test statistic for your hypothesis test in part (a)? (Round your answer to three decimal places.)

What is the *p*-value for your hypothesis test in part
(a)? (Round your answer to four decimal places.)

(c) At α = 0.05, can your null hypothesis be rejected? What is your conclusion? Chose one of the following.

Reject *H*_{0}. The mean rate per 5 CCF of
residential water throughout the United States does not differ
significantly from the rate per 5 CCF of residential water in
Tulsa.

Do not reject *H*_{0}. The mean rate per 5 CCF of
residential water throughout the United States differs
significantly from the rate per 5 CCF of residential water in
Tulsa.

Reject *H*_{0}. The mean rate per 5 CCF of
residential water throughout the United States differs
significantly from the rate per 5 CCF of residential water in
Tulsa.

Do not reject *H*_{0}. The mean rate per 5 CCF of
residential water throughout the United States does not differ
significantly from the rate per 5 CCF of residential water in
Tulsa.

(d) Repeat the preceding hypothesis test using the critical value approach.

State the null and alternative hypotheses. (Enter != for ≠ as needed.)

H_{0}:

H_{a}:

Find the value of the test statistic. (Round your answer to three decimal places.)

State the critical values for the rejection rule. Use α = 0.05.

(Round your answers to three decimal places. If the test is one-tailed, enter NONE for the unused tail.)

test statistic≤

test statistic≥

State your conclusion. Chose one of the following.

Reject *H*_{0}. The mean rate per 5 CCF of
residential water throughout the United States does not differ
significantly from the rate per 5 CCF of residential water in
Tulsa.

Do not reject *H*_{0}. The mean rate per 5 CCF of
residential water throughout the United States differs
significantly from the rate per 5 CCF of residential water in
Tulsa.

Reject *H*_{0}. The mean rate per 5 CCF of
residential water throughout the United States differs
significantly from the rate per 5 CCF of residential water in
Tulsa.

Do not reject *H*_{0}. The mean rate per 5 CCF of
residential water throughout the United States does not differ
significantly from the rate per 5 CCF of residential water in
Tulsa.

Answer #1

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