Question

A recent gasoline survey shows that the national average price of gasoline was $3.498 a gallon. It was felt that gasoline in Texas was significantly lower than the national average. A survey of 10 different suburbs in Dallas, Texas found the average price of gasoline to be $3.394 a gallon with a sample standard deviation of $0.1526. Assume that gas prices follow a normal distribution. We will perform a hypothesis test for this claim at α = 0.01.
The alternative hypothesis is:
Question 2 options:

1)

HA: μ < $3.498


2)

HA: μ > $3.498


3)

HA: μ = $3.498


4)

HA: μ ≠ $3.498

Answer 1

2) HA: μ > $3.498