Questions: A company claims that the mean monthly residential electricity consumption in a certain region is more than 890 kiloWatt-hours (kWh). You want to test this claim. You find that a random sample of 70 residential customers has a mean monthly consumption of 930 kWh. Assume the population standard deviation is 128 kWh. At α=0.05, can you support the claim? Complete parts (a) through (e).
(a) Identify H0 and Ha. Choose the correct answer below.
A. H0: μ>890 (claim)
Ha: μ ≤ 890
B. H0: μ>930 (claim)
C. H0: μ ≤ 930
Ha: μ ≤ 930
Ha: μ>930 (claim)
D.
E.
H0: μ=890 (claim)
Ha: μ ≠ 890
H0: μ=930
Ha: μ ≠ 930 (claim)
H0: μ ≤ 890
Ha: μ>890 (claim)
(b) Find the critical value(s) and identify the rejection region(s). Select the correct choice below and fill in the answer box within your choice. Use technology.
(Round to two decimal places as needed.)
A. The critical values are ±
B. The critical value is
Transcript text: A company claims that the mean monthly residential electricity consumption in a certain region is more than 890 kiloWatt-hours (kWh). You want to test this claim. You find that a random sample of 70 residential customers has a mean monthly consumption of 930 kWh. Assume the population standard deviation is 128 kWh. At $\alpha=0.05$, can you support the claim? Complete parts (a) through (e).
(a) Identify $\mathrm{H}_{0}$ and $\mathrm{H}_{\mathrm{a}}$. Choose the correct answer below.
A. $\mathrm{H}_{0}: \mu>890$ (claim)
$\mathrm{H}_{\mathrm{a}}: \mu \leq 890$
B. $\mathrm{H}_{0}: \mu>930$ (claim)
C. $\mathrm{H}_{0}: \mu \leq 930$
$H_{a}: \mu \leq 930$
$H_{a}: \mu>930$ (claim)
D.
E.
\[
\begin{array}{l}
\mathrm{H}_{0}: \mu=890 \text { (claim) } \\
\mathrm{H}_{\mathrm{a}}: \mu \neq 890
\end{array}
\]
$\mathrm{H}_{0}: \mu=930$
$H_{a}: \mu \neq 930$ (claim)
$\mathrm{H}_{0}: \mu \leq 890$
$H_{a}: \mu>890$ (claim)
(b) Find the critical value(s) and identify the rejection region(s). Select the correct choice below and fill in the answer box within your choice. Use technology.
(Round to two decimal places as needed.)
A. The critical values are $\pm$ $\square$
B. The critical value is $\square$
Solution
Solution Steps
Step 1: Hypotheses
We are testing the claim that the mean monthly residential electricity consumption in a certain region is more than 890 kWh. Therefore, we set up our hypotheses as follows:
The standard error SE is calculated using the formula:
SE=nσ=70128≈15.2989
Step 3: Calculate the Test Statistic
The test statistic Z is calculated using the formula:
Z=SExˉ−μ0=15.2989930−890≈2.6146
Step 4: Calculate the P-value
For a right-tailed test, the P-value is calculated as:
P=1−Φ(Z)≈0.0045
Step 5: Determine the Critical Value and Rejection Region
For a significance level α=0.05 in a right-tailed test, the critical value Zcritical is:
Zcritical=1.645
The rejection region is defined as:
Z>1.645
Step 6: Conclusion
Since the calculated test statistic Z≈2.6146 falls within the rejection region Z>1.645 and the P-value 0.0045 is less than α=0.05, we reject the null hypothesis.
Final Answer
We can support the claim that the mean monthly residential electricity consumption is more than 890 kWh. Thus, the answer is: