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In an effort to reduce energy costs, a major university has installed more effic

ID: 2799328 • Letter: I

Question

In an effort to reduce energy costs, a major university has installed more efficient lights as well as automatic sensors that turn the lights off when no movement is present in a room. Historically, the cost of lighting an average classroom for 1 week has been $265. To determine whether the changes have signficantly reduced costs, the university takes a sample of 50 classrooms. They find that the average cost for 1 week is $247 with a standard deviation of $60. When testing the hypothesis (at the 5% level of significance) that the average energy use has decreased from the past, what is the p-value? (please round your answer to 4 decimal places)

Explanation / Answer

x = 265

u = 247

std dev, s = 60

n = 50

95% confidence interval

P(x<265) = (x-u) / s/sqrt(n) = (265-247) / 60 / sqrt(50) = p (z=2.12132)

p value = 0.016948

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