Question: (17 points). We are interested in estimating the mean price of unleaded gasoline in the Milwaukee area. Please answer the following questions:

1. Using the data from Problem 1, have JMP determine the 99% confidence interval for the mean gasoline prices. Report your answer as an interval of prices rounded to two decimal places.
2. Give an interpretation of this confidence interval.
3. AAA lists out that the average price of gasoline in the Milwaukee area last month was $2.51. According to your data, can we say there is a significant difference in the mean gasoline prices compared to last month?

1. State the null and alternative hypotheses.
2. Describe the assumptions of this hypothesis test to determine if the test statistic you are using is appropriate. Fully explain. Below are the four items you should comment on:

• Does the Normality (or non-Normality) of your data set matter? Why or why not?
• Is the population standard deviation, , known or unknown?
• If is known, state what it is. If is unknown, state what we are using to estimate it.
• Which distribution should we use to model probabilities related to the hypotheses?

1. Determine the p-value using JMP. Below are two suggested ways of doing this:

• JMP’s Test Mean function
• JMP’s Distribution Calculator: This can be found via Help >> Sample Data >> Teaching Scripts >> Interactive Teaching Modules >> Distribution Calculator

1. Make a decision and state your conclusion to the hypothesis test in context of the original problem . Use a significance level of (i.e. 1% significance level).
2. Compare the results of your significance test to the 99% confidence interval for the mean gasoline price per gallon. Does the conclusion in part (iv.) still hold for the confidence interval? Fully explain.

Price: $2.99

Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document