Explore BrainMass

Explore BrainMass

    Hypothesis testing

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Electricity is commonly traded at the California-Oregon border (COB) and Palo Verde (PV) in Arizona. Assume you take a sample of 100 daily electricity market closing prices (in $/megawatthour) from both COB and PV. The following are the summary statistics resulting from your sample:

    COB PV
    Average Price $200 $300
    Standard Dev. $100 $50
    Sample Size 100 100

    Using the information above conduct a hypothesis test to determine if the average market price at COB is the same as the average market price at PV (Hint: You are looking at the difference in two means). Assume α = .05 and remember to clearly state your null and alternate hypothesis as well as your conclusion about whether or not the average prices are equal.

    © BrainMass Inc. brainmass.com June 3, 2020, 6:52 pm ad1c9bdddf
    https://brainmass.com/statistics/hypothesis-testing/hypothesis-testing-77366
    $2.19

    ADVERTISEMENT