CH9 – Comparison of Residential Water Rates Among U.S. Public Utilities

Essentials of Modern Business Statistics with Microsoft® Excel®

Anderson, Sweeney, Williams, Camm, and Cochran

07th Edition

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Formulate hypotheses to determine if the mean rate per 5 CCF of residential water charged by U.S. public utilities differs from the rate charged by the city of Tulsa. Choose the correct null hypothesis and alternative hypothesis. Calculate the p-value for the hypothesis test. Determine if the null hypothesis can be rejected at α = 0.05. Draw a conclusion regarding the difference in residential water rates between U.S. public utilities and Tulsa. Repeat the hypothesis test using the critical value approach.

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