Thursday, February 4, 2010

Difficult Probability question below. Is it True or False?

A recent gasoline survey said that the national average gasoline price was $1.298 a gallon. It was felt that gasoline in Texas was significantly lower than the national average. A survey of 7 different suburbs in Dallas, Texas, found the average price of gasoline to be $1.192 a gallon with a standard deviation of $0.0641. What is the test value?';





If all variables are held constant except that the standard deviation becomes larger, then the test value becomes more negative.











True


or


FalseDifficult Probability question below. Is it True or False?
The test value is the number of standard deviations away from the mean.





(Texas mean - national mean)/ standard deviation





will give the number of standard deviations texas mean is away from the national mean.





(1.192 - 1.298)/0.0641 = -1.65366615 = test value





If you increase the standard deviation you make the test value closer to 0. So it becomes less negative.





False is the answer.Difficult Probability question below. Is it True or False?
The t-score, which is what I assume you mean by test value, is (1.192-1.298)/0.0641=1.654.





If the standard deviation becomes larger, the t-score will become less negative.





The answer is False.
false

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