Question

It charges per 5 centum cubic feet (ccf) of residential water is $21.62. How do the residential water rates of other U.S. public utilities compare to Tulsa's rate?

a) Formulate hypotheses for comparing rates
b) Calculate p-value for hypothesis test
c) Determine if null hypothesis can be rejected
d) Use critical value approach

Answer 1

To compare residential water rates of Tulsa with other U.S. public utilities, formulate hypotheses, calculate p-value, determine if null hypothesis can be rejected, and use critical value approach. Hence, all are true.

Step-by-step explanation:

To compare the residential water rates of Tulsa with those of other U.S. public utilities, we can formulate the following hypotheses:

null hypothesis (H0): The residential water rates in Tulsa are the same as the rates in other U.S. public utilities.

alternative hypothesis (Ha): The residential water rates in Tulsa are different from the rates in other U.S. public utilities.

We can then calculate the p-value for the hypothesis test using statistical methods and compare it to a pre-determined significance level (e.g., 0.05) to determine if the null hypothesis can be rejected. If the p-value is less than the significance level, we can reject the null hypothesis and conclude that the residential water rates in Tulsa are different from other U.S. public utilities. We can also use the critical value approach, which involves comparing the test statistic to a critical value from the appropriate distribution.