3.59 3.59 4.79 3.56 3.55 3.71 3.65 3.6 3.75 3.56 3.57 3.59 3.55 3.99 4.15 3.66 3.63 3.73 3.61 3.57 1. Until five months ago, suppose the average weekly gas price had remained stable around $3.55, but...

1. Until five months ago, suppose the average weekly gas price had remained stable around $3.55, but a shock to supply seemed to push prices higher thereafter. Let’s test whether this is so using our data.

2. Develop the
H0 and
H
a
hypotheses. Is it a lower-, upper-, or two-tailed test? ii. Let
α
=
.05. What probability does
α
represent?

3. Assume
σ
= 0.30 and compute the test statistic.