The Natural Resources Canada Web site said that the national average price of regular gasoline was $1.058 per litre on July 3, 2007. It was felt that the price of gasoline in Toronto was significantly lower
Than the national average. A survey of ten different gas stations in Toronto, Ontario found the average
Price of gasoline to be $1.028 per litre with a standard deviation of $0.0263. What is the critical value
Using $a = 0.01$ ?
A) 1.26
B) 2.33
C) -1.26
D) -2.33

Question

Quizplus · Accepted Answer

To find the critical value, we need to use a one-tailed test (since we are checking if the price in Toronto is significantly lower). With α = 0.01 (one-tailed), we can find the critical value using a t-distribution table or calculator with 9 degrees of freedom (n-1). The critical value is approximately -2.33. Since we are only interested in the absolute value of the critical value, the answer is D (-2.33).

The Natural Resources Canada Web Site Said That the National a=0.01a = 0.01a=0.01

The Natural Resources Canada Web Site Said That the National $a = 0.01$