Test1- Determine if the cost associated with Geothermal Production is less that $3.50 per kWh. 1.

In this first component of the hypothesis test, we want to familiarize ourselves with the population. The population we are studying is the cost per kWh in a geothermal plant. We are analyzing a sample of 52 weeks but the true population would be the cost associated with all of the weeks in which a geothermal plant produced energy. 2. Our Null Hypothesis will assume what we are testing 3. since this is the only domain not in the null hypothesis. 4. We now select how confident we want to be about our conclusions. We will use a 95% confidence that our conclusion is correct and therefore . 5. The formula we will use to test our hypothesis will be the t test where since we do not know the true standard deviation of the

population. If we had the true standard deviation, we could use a z test and our equation would stay the same except our s would become a . is known as the standard deviation for the entire population. 6. We now check if the test we picked is reasonable and as I stated in 5, since we do not know the true standard deviation of the population, we use the t test. 7. We now perform the t-test using our calculators. The tests calculated the density under the t distribution curve for a specific sample standard deviation and specific degrees of freedom for a given t. This produces The p value 8. The sample mean for geothermal production is equal to 4.56 and the standard deviation is equal to 2.44. We use this to find our p, which is 0.0014, and since this is less then 0.05 so we reject and accept . This means that were are 95% confident that the true mean is greater then $3.50. Test 2: 1. The population we are studying is the cost per kWh in a geothermal plant. We are analyzing a sample of 52 weeks but the true population would be the cost associated with all of the weeks in which a geothermal plant produced energy. 2. Our Null Hypothesis will be since the null always assumes the value of the question. 3. Our alternate hypothesis will be and it will include the domain not in the null hypothesis. This would disprove our null hypothesis if proven true. 4. We now select how confident we want to be about our conclusions. We will use a 95% confidence that our conclusion is correct and therefore . 5. The formula we will use to test our hypothesis will be the t test where since we do not know the true standard deviation of the

population. If we had the true standard deviation, we could use a z test and our equation would stay the same except our s would become a . is known as the standard deviation for the entire population. 6. We now check if the test we picked is reasonable and as I stated in 5, since we do not know the true standard deviation of the population, we use the t test. 7. We now perform the t-test using our calculators. The tests calculated the density under the t distribution curve for a specific sample standard deviation and specific degrees of freedom for a given t. This produces The p value 8. The sample mean for geothermal production is equal to 4.56 and the standard deviation is equal to 2.44. We use this to find our p, which is 0.1. Since p we fail to reject . Which means that we cannot conclude if out true mean is grater then $5.00.