# Before the 1973 oil embargo and subsequent increases in the price of crude oil, gasoline usage in

## Question:

Before the 1973 oil embargo and subsequent increases in the price of crude oil, gasoline usage in the United States had grown at a seasonally adjusted rate of 0.57 percent per month, with a standard deviation of 0.10 percent per month. In random 15 randomly chosen months between 1975 and 1985, gasoline usage grew at an average rate of only 0.33 percent per month. At a 0.01 level of significance, can you conclude that the growth in the use of gasoline had decreased as a result of the embargo and its consequences?

State the null hypothesis and the alternate hypothesis and the rejection area.

What is the value of the test statistics?

What is your decision regarding the null hypothesis?

What is the P-value?

Interpret the result from (d).

**Related Book For**

## Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander