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    Sample Size Statistic

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    HI,

    I am having difficulty understanding statistics. I had just completed a paper in which I made a statistical comparison using gas prices in 1975 and 2006. The gas prices were in today's dollars. I need to do a small sample size statistic with the same info and I'm lost. Could you walk me through this with the 5 step hypothesis and a description of the results?

    Thank you

    Response:
    This is the chart I used

    Historical Gas Prices
    (Adjusted for inflation)
    Year Price Per Gallon
    1950 $1.91
    1955 $1.85
    1960 $1.79
    1965 $1.68
    1970 $1.59
    1975 $1.80
    1980 $2.59

    1985 $1.90
    1990 $1.51
    1995 $1.28
    2001 $1.66
    2002 $1.31
    2003 $1.52
    2004 $1.79
    2005 $2.28
    2006 (so far) $2.68

    If you need more info please advise.
    Thank You

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    Solution Preview

    Please see the attached file.

    Testing the coefficient of correlation: When there is no linear relationship between two variables,  = 0.

    Hypotheses: H0:  = 0 vs. HA:  ¹ 0
    Test statistic:

    The statistic is Student t-distributed with ...

    Solution Summary

    This Solution contains calculations to aid you in understanding the Solution to this question.

    $2.19

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