A local official is attempting to determine if the regional price of unleaded regular gasoline exceeds the national average of $3.09 per gallon. She surveys 28 local stations recording the gasoline price on a single day. The average value was $3.14 with a standard deviation of $0.54, a minimum of $2.91 and a maximum of $3.25.

A. Define the hypotheses for this measurement in (1) statement form, and (2) equation form.

B. In the context of the hypotheses in part A, interpret the consequences of making a Type I error, and a Type II error.

Question

A local official is attempting to determine if the regional price of unleaded regular gasoline exceeds the national average of $3.09 per gallon. She surveys 28 local stations recording the gasoline price on a single day. The average value was $3.14 with a standard deviation of $0.54, a minimum of $2.91 and a maximum of $3.25.

A.	Define the hypotheses for this measurement in (1) statement form, and (2) equation form.

B.	In the context of the hypotheses in part A, interpret the consequences of making a Type I error, and a Type II error.