An energy analyst wants to test if U.S.oil production is random over time.The analyst has monthly production values for the two years.The analyst finds 12 months are above the median,12 months are below the median,six runs are below the median,and five runs are above the median.Using the p-value approach and α = 0.01,the appropriate conclusion is _________.
A) do not reject the null hypothesis;conclude oil production is not random
B) reject the null hypothesis;conclude oil production is not random
C) reject the null hypothesis;conclude oil production is random
D) do not reject the null hypothesis;we cannot conclude oil production is not random

Question

Quizplus · Accepted Answer

The number of runs (11) is consistent with randomness, and at α = 0.01, there is insufficient evidence to reject the null hypothesis of randomness.

An Energy Analyst Wants to Test If U