# Question: For a specific year the median price of natural gas

For a specific year, the median price of natural gas was $10.86 per 1000 cubic feet. A researcher wishes to see if there is enough evidence to reject the claim. Out of 42 households, 18 paid less than $10.86 per 1000 cubic feet for natural gas. Test the claim at α = 0.05. How could a prospective home buyer use this information?

Perform these steps.

a. State the hypotheses and identify the claim.

b. Find the critical value(s).

c. Compute the test value.

d. Make the decision.

e. Summarize the results.

Use the traditional method of hypothesis testing unless otherwise specified.

Perform these steps.

a. State the hypotheses and identify the claim.

b. Find the critical value(s).

c. Compute the test value.

d. Make the decision.

e. Summarize the results.

Use the traditional method of hypothesis testing unless otherwise specified.

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