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Mean annual water consumption per household in a certain

Question: Mean annual water consumption per household in a certain city is 6,800 L. The variance is 1,440,000. A random sample of 40 households in one neighborhood reveals a mean of 8,000.

a. Test the hypothesis that these households have

(i) different and

(ii) higher consumption levels than the average city household.

b. Comment on the practical significance of this result.

c. What is the PROB-VALUE for each hypothesis in part (a)?

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