You Are Interested in Determining Whether the Mean Price of Electricity

question 97

Multiple Choice

You are interested in determining whether the mean price of electricity offered by solar companies is different in the southern states than in the northern states.You select a random sample of 8 solar companies from the southern states and 11 from the northern states.For the southern states, the average price is 12.2 cents per kWh (kilowatt hour) and the standard deviation is 0.8 cents per kWh.For the northern states, the average and standard deviation are 11.7 and 1.0 cents per kWh respectively.If you use a significance level α = 0.10 and assuming the values are normally distributed in both populations, the critical t value from the table is ______.

• A)1.330
• B)1.729
• C)1.734
• D)1.740
• E)1.747

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting overheads, taxes, and interest payments.

Operating Expenses

Costs related to the day-to-day functions of a business outside of direct production costs, such as rent, salaries, and utilities.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and considered variable costs.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used in creating the product.